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Ruling Russia 

The seven men 
who really count 

p- "* 18 


Friends of Bill 

Clinton toasts Gingrich 
and Greenspan 


UmiIi 

World Business Newspaper http://vvww.FT.com 


Page 18 Philip Stephana, Page 14 



FRIDAY NOVEMBER 1 1996 


Zaire’s army faces Russian gas group to raise up to $5Q0m t& 

defeat as Tutsis ^ • g* 

advance on Goma CjrJIZprOIII JIUXIS lOt 


Zaire's army was faring a humiliating defeat as 
Tutsi fighters advanced on Goma, capital of 
north Kivu. The Tutsis, suspected of belonging 
to the Rwandan army, are on the verge of seiz- 
ing a swathe cd east Zaire, putting them in a 
position to dictate terms to the Zairean authori- 
ties. The country is seemingly paralysed by the 
absence of President Mobutu Sese Seko, who Is 
being treated in Switzerland for prostate cancer. 
Page 16 

At I— »t 08 dead as aircraft hits houses 


By Join ' 
Andrew! 


til and 
fin Moscow 


Gazprom, th 
gas concert 
become 

panyjg^^t 

ket jfcc th 


n, thArorld’s biggest 
ace mf* g planning to 
tiyl lirst Russian cam- 
the eurobond mar- 
cs the collapse of the 


Sovagt Union. 

/The move could presage a 
Rood of similar issues by Rus- 
sian borrowers. . 

The company, which in 
October received $429 -3m from 
an international share offer, is 
expected to raise between 
$250m and $500m to finance 
investments to strengthen its 
already dominant hold on the 
European gas TwarVAt-. 

With the eurobond, Gazprom 
i intends to test the market for 


an aggressive capital-raising 
programme in the coming 
months. The eurobond move is 
likely to come swiftly after a 
Russian sovereign bond Issue 
planned for later this month. 

Mr Alexander Livshits, the 
finance minister, said yester- 
day he stm expected the sover- 
eign eurobond issue to come 
during November. 

This is despite fears over 
President Boris Yeltsin’s 
health, and the breakdown of 
talks with the International 
Monetary Fund over the dis- 
bursement of the latest 
tranche of the government’s 
$10.2bn budget rapport loan. 

“As a matter of principle we 
do not want to have a mass 
issue," he said. “We will have 


Power behind throne - — Jap* 15 

Eurobond* -- 24 

a small issue with a low yield. 
We want the first Russian 
bond issued abroad to have a 
respec ta ble status." 

Mr Livshits said hfe hoped 
the IMF would resume disburs- 
ing its credit after a review 1 of 
Russia's progress in collecting 
t uTftg in mid-November. 

The sovereign debt Issue la 
seen as a milestone in Russia's 
re-integration into the world 
economy, following agree- 
ments In principle with the 
Paris and London clubs of offi- 
cial and commerciaT bank 
creditors to reschedule its 


debts. It. and the Gaijirom 
issue, could dear the way for 
the rapid development of a cor- 
porate bond market, opening 
up a new source of capital for 
- the country’s biggest priva- 
tised companies. 

Several of Russia's munici- 
pal authorities, . including 
Moscow, St . Petersburg, and 
Nizhny Novgorod, are also 
planning to issue debt finance 
abroad. 

Mr Alexander Semenyaka, 
the Gdzpram. director responsi- 
ble for raising capital, said the 
company needed *4Qbn to 


by a variety of means through 1 
project fibftbee and the issue of , 
shares and bonds," be said. 

Mr Semenyaka said Gaz- 
prom .bad- to look abroad to 
raise' finance because of the 
underdevelopment of Russia's 
own capital markets. 

It would sell more equity to 
foreign investors following 
publication of internationally' 
acceptable accounts next sum- 
mer. The Russian government 
has agreed that 9 per cent of 
Gazprom's equity- can be sold 
abroad, 

Gazprom's placement of 1.15 


exploit Its vast reserves In the per cent of its shares abroad 
Yamal peninsula, and could Was heavily oversubscribed by 


not finance the. project solely 
through cash flow. 

“We will. finance these heeds 


International investors, sug- 
gesting there could be strong 
demand for II eurobond. 


All 95 passengers and crew cm board a Fokker 
F-100 ea route to Riotjde Janeiro were killed 
when It crashedshortly after take-off from Sao 
Paolo airport. True aircraft, operated by Brazil- 
ian airline TAm, clipped two blocks of flats 
before crashing into houses two miles from the 
airport. Rescue workers (above) said at least 
three peonjie on the ground were killed. Page 4 

Siena Ad ips Into radi Stena Line, the world's 
Ibrgesjc ferry operator, blamed competition on 
the Rfagiish C hann el and delayed ship deliveries 
for y a SKrzSim ($38m) loss during the first nine 
nwriths. Page 17 

JfiVorid Bank’s management attacked: 

The World Bank's management came under fire 
from members of Its executive board after its 
in-house watchdog warned that Its work on pov- 
erty reduction was inadequate. Page 7 

IFC moves Into Vietnam: The International 
Finance Corporation, private sector arm of the 
World Bank, announced its first move Into Viet- 
nam's nwanriai sector. Page 6 

Sabena unions agree cuts: Afresh 
financial crisis at Sabena was averted when 
trade unions agreed a cost-cutting programme 
after Swissair threatened to write off its 
SFr280m (f207dun) investment in the Belgian 
airline. Page 161 Airline strike likely to embar- 
rass Philippines, Page 6 

Pharma cia’at second profits wanting: 

Swedish-US pharmaceuticals company Pharm- 
acia and Upjohn issued its second profits warn- 
ing in three weeks. Page 17; Lex, Page 26 

Hungarian telecoms group to float: 

Matav. Hungary's national telecommunications \ 
company, is poised to Qoat within the next 18 
months. Page 17 

Malaysia challenges US threats Malaysia, 
whose national oil company laces US sanctions 
for Investing In Iran, said that it will use “Inter- 
national forums" to challenge Washington’s 
■' threat Page 6 

India speeds Investment approval: 

India's Foreign Investment Promotion Board 
cleared 63 foreign investment proposals worth a 
total of S694m, sustaining a recent government 
drive to accelerate such approvals. Page 5 

TV Asahl limns Murdoch’s Influence: 

Japan's Asahl National Broadcasting, in which 
Rupert Murdoch's News Corporation has a 21.4 
per cent stake with Softbank, has acted to curb 
tnV: influence of the media group and its Japa- 
nese- ■ partner. Page 17 

fbrt et watchdogs plan su m mi t: The 

worid'Li three biggest commodity futures market 
watbhdr S )gs are to discuss concerns about global 
. commo^Jity market regulation in the wake of the 
SumWomo copper sca nd al. Page 26 

Thiil trade gap narrows: Thailand's current 
account deficit dipped below Bt30bn (Si.lSbn) 
for the first time in six months, the central bank 
said, suggesting the country's economic woes 
may be easing. Page 6 

Swiss arm y secrets missing: The head of 
the Swiss army, which has not fought a war in 
500 years, is stepping down following accusa- 
tions that top-secret battle plans may have 
fallen Into the wrong hands. Page 2 

PT.com: the FT web site provides online news, 
comment and analysis at http://www.FT.com 


Malaysian 
banks in 
complex 
talks oyer 

moraor 


merger, 


By James Kynge 
in Kuala Lumpur 




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Two Malaysian banks are 
negotiating to merge into the 
country’s second biggest bank, 
responding to a government 
drive to prepare local industry 
for unrestricted regional com- 
petition. 

The government has pledged 
to open its banking sector to 
foreign competition by 2004. It 
Is aware that many of the 37 
banks which serve Malaysia's 
20m people would struggle to 
compete with Asia's heavy- 
weight banking groups. 

The complex negotiations, 
confirmed by officials yester- 
day. are aimed at merging 
Kwong Yik Bank and DCB 
Holdings. Another company, 
the conglomerate Malaysian 
Resources (MRCB), is also 
I negotiating to take a stake in 
the new bank. The name of the 
new bank and the proposed 
shareholdings of the respective 
parties have not been revealed. 

A merger of Kwong Yik and 
DCB would create a group 
with shareholders' funds of 
M$1.89bn <*747tn) and total 
assets of about M$45.7bn. This 
would rank it behind May- 
bank, which has total assets of 
M994J2bn, and just above Bank 
Bumlputra with assets of 
about M*45.6bn. 

The new group is likely to 
operate a range of banking and 
stockbroking services. 

Mr Rashid Hussain, the 
stockbroker and owner of a 
brokerage, is expected to be a 
prime mover in the banking 
and financial services com- 
pany. Mr Rashid, the 
son-in-law of Malaysian tycoon 
Mr Robert Kuok, has a reputa- 
tion for Innovation and profes- 
sionalism in stockbroking. 

The merger Is expected to 
happen in stages. DCB is 
expected to acquire the Rashid 
Hussain stockbraking house. 
In return. Mr Rashid - who 
already owns 20 per cent of 
DCB - Is expected to receive 
new shares. Later, DCB will 
acquire Kwong Yik Bank and 
MRCB will also take a stake. 
Industry analysts said. 

Through the MRCB stake, 
the government will have a 
significant say In the new 
bank. In return, the bank is 
likely to be regarded favoura- 
bly by top officials - a crucial 
attribute in a country where 
the government often has an 
influence over which compa- 
nies are awarded a range of 
commercial op p n i - t imiwua 
“What we are seeing is Mal- 
aysia Inc at work," said one 
analyst at a local brokerage 
house. “Signs of government 
guidance are everywhere.” 

One sign Is the fact that 
i Kwong Yik Is a subsidiary of 





Brussels approves 
French scheme to 
meet Emu target 


LDP set to form new government 

Japanese prim# minister Ryutatb HashkttOfa, right; tattcat w to Takatco 
Del, lander of the Mbring iodai Democnmo party, « member Of th# 
previous cpaBtion, whir# stt# Should sign a pofley accord in Tokyo 
yester da y, the os re erm ftt, W hi ch also involved the New Hdrfaihger 
party, should aBow MT ftoh fc no toV coneervsthm JJberef Democratic 
party to fl b vetn as a one-p#rt» ndoortly p o V e risns n t , Wfth Us two fanner 
partners offering parliamentary support on the Issues outlined in the 
policy accord. Me mb er s of pert Mu ent wM probably elect Mr Hashlmoto 
prime mMstor at an e atfau rdfcwuy session tit th# tower house nest 
Thursday. Report, Page 18; Editorial Comment, Page.15- .. _ Pfctuw 


Britain 
set for 
showdown 
over EU 
work rule 

By Robert Paston, Vr/ 
Political Editor 

The British government is 
preparing for its most dra- 
matic showdown to date with 
its European Union partners, 
over a European Court of Jus- 
tin judgment due in ten days 
whidh is expected to imple- 
ment a maximum 45- hour 
wo r k i n g 1 week In the UK. 

The government has been 
bitterly resisting the imple- 
mentation. of the restrictions. 
Routs trad in a 1993 directive. 

If the judgment goes against 
the UK, it will threaten to veto 
any- EU re f orms proposed at 
the . current European- inter- 
government conference unless 
the judgment is over tur ned. 

"We don't care whether or 
not there is a-oew EU treaty 
[under negotiation afrthe con- 
ference]! So if tl&j’-4qant it. 
they are going to have 1 

ball on the working time 
directive," said a senior politi- 
cian. 

The cabinet’s combative 
stance follows the receipt of 
disappointing legal advice on 
their ability to delay Imple- 
mentation. Ministers bad 
hoped that they could buy 
time by insisting oh a long 
period of consultation before 
Implementation, 

However they have been 
advised that the November 23 
deadline for other EU coun- 
tries applies to the UK as well. 

The government denied it 
was once again talking tough, 
as in the early stages of the 
BSE beef crisis, only to back 
off when it came to the 
crunch. 

"Yon have to understand 
that the prime- minister feels 
passionately about the social 
angle or the EU," said one of 
his colleagues. 

"Having' secured an opt-out 
. from the social chapter, he Is 
not going to see all that 
thrown away just before the 
British election'’. 

Hie working time directive 
would give employees in many 
Industries the right to secure 
a maximum 48-hour working 
► week. Mr Major felt he had 

Continued on Page 16 
Pension debt. Page 8 


Continued on Page 16 


By GUBan Tett In London 
and David Owen In Ports 

The European Commission 
yesterday approved France’s 
plan to use FFrB75bn ($7.36bn) 
of pension fund transfers from 
France Tfclfccom to reduce Its 
budget deficit to qualify for a 
single currency. 

The speed at which the deri- 
sion was taken Irritated Ger- 
many and Britain. Consulta- 
tions with countries like the 
UK had not yet been com- 
pleted after doubts about the 
plan's legitimacy were raised 
last week. 

Mr Yves Franchet, director 
of the Commission's statistical 
wing, said France could use 
the pension fund transfers to 
cut its deficit to 3 per cent of 
gross domestic product in 1697. 

The move strengthened 
belief in the financial markets 
that political pressure would 
ensure that European Mone- 
tary Union takes place. The 
priceB of European govern- 
ment bonds rose sharply, and 
the French franc rose to 
FFr3.3755 against the D-Mark, 
from a previous close of 
FFr3.379. 

The Commission’s decision 
delighted Mr Jean Arthuls. 
French finance minister, who 
said it “confirmed his analy- 
sis" that the move was permis- 
sible. 

However. It Irritated some 
European countries, including 
Germany. Mr Klaus-Dleter 
Kuehbacher, a Bundesbank 
council member, argued that 
the decision was “wrong”. 

“It challenges other conn- 
tries which seemingly do not 
fulfil the criteria to take siml- 


French unemployment rose In 
September to a record 8.11m 
as an opinion poll showed 
prime minister Alain Jnppd’s 
popularity at a record low. 
The Bank of France clipped 
five basis points from Its 
intervention base rate to 3*20 
per cent. Markets felt little 
effect. Report. Page 2i Paris 
may sell part of GAN, Page 2 

lar measures,” he saldj 
reflecting concern that coun- 
tries such as Italy may now 
copy the French move. 

Some economists also 
warned that the derision could ' 
exacerbate splits between the 
Bundesbank and other Euro- 
pean countries about how 
strictly the Emu criteria 
should be applied. 

The European Monetary 
Institute is to publish its 
report on Emu convergence 
next week. Some diplomats 
believe this may take , a more 
rigorous approach than the 
Commission. 

Last week a meeting of the 
Commission's statistical advi- 
sory committee revealed that 
German, British and Dutch 
officials doubted whether it ; 
was legitimate for France to 1 
use France TM6com funds in 
its budget calculations. 

Hie Commission asked each 
member state to comment and. 
said yesterday that a “large- 
majority" of countries 
accepted France's move, but 
it refused to reveal the size of 
this' majority. 

The statistical advisory com- 
mittee now plans to hold an 
emergency meeting to itirtnii- 
late its response next Monday. 


< ) x r is'-! w [ I ■>! i :- Kti : . 



CONTENTS 


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2 


NEWS: EUROPE 


September’s figure climbs as prime minister’s standing falls 


French jobless at record leyel 


By David OvMn in Paris 

French unemployment rose 
more than expected In Sep- 
tember. It climbed by 27,700 
to reach a record high of 12.6 
per cent, as an opinion poll 
showed the popularity of Mr 
Alain Juppe, the prime min- 
ister, falling to a record low. 

The unemployment rate 
repo rted by the labour min- 
istry was the same as that 
initially recorded for August 
but this was subsequently 
revised down by 0.1 percent- 
age points to 12.5 per cent. 
The September figure is 
more than a full point higher 
than the level a year ago. 

Yesterday's figures, which 
took the overall number out 


of work to 3.11m, came as 
the Bank of France shaved 
five basis points from its 
intervention base rate to 320 
per cent The move, which 
was smaller than expected, 
had little immediate impact 
on the markets. 

The opposition Socialist 
party seized on yesterday’s 

jobless statistics, saying the 
“inexorable*’ rise in unem- 
ployment was a “disastrous 
consequence of the restric- 
tive economic policy” of Mr 
Jupp§’s government. 

It said that the most wor- 
rying aspect of the figures 
was the Increase in unem- 
ployment among young peo- 
ple under 25 years of age. It 
pledged to give this problem 


change) 

13.0 



“an absolute priority". 

The party's comments 
came as a new survey 


showed Mr Juppe’s popular- 
ity at its lowest level since 
he entered office 17 months 
ago.. 

The Louis Harris poll for 
the magazine Valeurs 
Actuelles said 24 per cent, or 
less than one in four, of 1.000 
respondents questioned were 
satisfied with the prime min- 
ister’s performance, down 
from 30 per cent a month 
ago. This figure was lower 
even, than the 27 per cent 
approval rating for Mr Juppe 
recorded last December 
around the time of thp crip- 
pling public-sector strikes 
that virtually paralysed the 
country. 

The government has been 
criticised strongly in recent 


Passtngar trafflo ' Freight traffic 
Employes* Route Passenger/ % change TonrW % change 
1994 fOOOkrii) km 1996 over km ISBSover 
1994 1996 1985 ' 1995 1 -1985 


“ ELI freight transport by road'- 
. tboneftm (bnj . ' - ’ 

' . 1200—- r~— : -V 


days for its handling of- the 
sale of the Thomson elec- 
tronics giant to the Lagar-- 
dfere defence group. Earlier 
this week, it tried to defuse 
the situation by promising a 
fall parliamentary debate 
before a definitive decision 
was taken. 

The survey also showed a 
five-point increase to 70 per 
cent in the proportion of 
respondents who believed 
the economy was deteriarat- 
mg. 

Adding to the gloomy pic- 
ture, the Unedic unemploy- 
ment ina^ i r g nfp scheme yes- 
terday revised up its jobless 
forecasts and. predicted 
unemployment would not 
finally stabilise ™tn 1998. 


El> tratfit te i k pert tjtni.: 

toiina/kra^bny. 


investors 


Germany.lDBJ 

Spain (RENFE) 
UK (BR) 


1894 fOOOkrn) 
1984 

Jem 

1996 

185,690 

32.3 

S52bn 

327,a76v\ l -;A*A \ 

VSOfifcn r- 

.= 4 --- - . + 

i % 

41,137 

12.8 "■ 

1&3bn 

118,066 

18.6 

29.8bn 




.197078.80 89 00 

. •.t J 



93 94 7 1970 75 SO bSiaOIJtS .94 


Red signal ahead for EU rail aid 


R ailways on the European 
continent are caught in a 
time-warp. There is no single 
market, competition rules do not 
apply and rail companies in most EU 
countries are heavily subsidised. 

While liberalisation has forced 
deregulation in energy, telecommu- 
nications and some parts of the 
transport industry, such as airlines, 
most EU rail operators have been 
left untouched. 

But their cosy position could be 
co ming to an end. Plans are being 
drawn up in Brussels to strip rail 
companies of their right to unlimited 
state aid. force the break-up or 
monopolies which control infrastruc- 
ture and services, and remove barri- 
ers to EU-wide rail networks. 

Said one EU diplomat: “The choice 
is between governments pouring 
money into a bottomless pit. or 
doing something about loss-making 
monopolies. The Commission is 
offering member states an alterna- 
tive." 

Rail operators from the 15 EU 
countries have been meeting in 
Brussels this week to map out the 
first “freight freeways" across the 
European Union. The idea, spear- 
headed by the Commission, is to 
force the pace of change by pressing 
ahead with corridors running 
through several EU countries to 
prove that rail can match the speed 
and reliability of road hauliers. 

Rail freight services have been in 
steady decline for 25 years. Hauliers 
have taken to the road as rail freight 
speed has dropped to an average 


Brussels is intending to shake up the 
Continent’s cosseted railway 
companies, writes Caroline Southey 


speed of 25km per hour. Between 
1970 and 1994 rail lost half its market 
share as road freight increased by 
150 per cent. Although railways car- 
ried 25 per cent more passengers, 
this figure must be set against a 120 
per cent rise in car ownership. 

The merit of the freight freeway 
initiative is that it requires no legis- 
lation or large investment in infra- 
structure. As a result, all member 
states have volunteered to take part. 
One of the first of six routes to be 
considered will run from the ports of 
Rotterdam. Antwerp and Hamburg 
through German; and Austria to 
Milan. 

The Commission hopes the corri- 
dors will set useful precedents by 
breaking down national barriers and 
sweeping away out-dated practices. 
These include different signalling 
and safety standards, limited and 
nationally dominated access to 
tracks, as well as crew and locomo- 
tive changes at borders. 

However, the enthusiasm for the 
freight freeways could easily evapo- 
rate once Mr Neil Kinnock, the 
transport commissioner, begins an 
assault on commercial structures. 

A key element of his strategy 
includes bringing rules on state aid 
for rail in line with those for air- 
lines. This would mean only large 


restructuring projects and subsidies 
for public service networks would be 
entitled to assistance. “The nuclear 
option would be to apply wholesale 
all the rules on state aids. But we 
don’t want to do tint Not yet any- 
way," a Commission official said. 

The intention is also to force rail 
companies to put their infrastruc- 
ture and oper a tional divisions under 
separate and distinct managements. 
“There has to be some independence 
between those running the services 
and those owing the track. Other- 
wise new c ome r s have no chance of 
breaking into the market." an indus- 
try official said. 

T he Commission also wants to 
tackle the staunchly national 
character of EU rail compa- 
nies. Mr Kinnock will have to con- 
sider whether to apply three-year-old 
laws on public procurement which 
cover the water, energy, transport 
and telecommunications sectors. 
These set down the principles of 
non-discrimination between suppli- 
ers as well as procedures for open 
tenders. Competition rules which 
forbid discrimination by dominant 
suppliers could also be enforced. 

The commissioner wants govern- 
ments to write off debts accumulated 
before 1993. However, as a quid pro 


quo, rail companies would have to be 
run on a commercial basis. “The 
idea is to get away from the debt 
culture. This should be attractive to 
many member states trying to meet 
the criteria for joining a single cur- 
rency" the EU diplomat said. 

Brussels admits the changes will 
cost jobs, but argues that opting for 
no change is a recipe for disaster. It 
has proposed that EU social fUnds be 
used to ease the impact. 

Opposition to the plans is wide- 
spread. Strongly unionised rail com- 
panies such as the Belgian SNCB / 
NMBS and the French SNCF are 
opposed to radical restructuring. 

“There is no need to cut jobs, to 
make a revolution. We are compet- 
ing against an uncontrolled sector 
where the market is totally free and 
where users do not pay the proper 
price for the service. We do not need 
this kind of cowboy competition," 
said Mr Hugnes de Villele, secretary 
general of the EU federation of 
transport workers' unions. 

Mr Kinnock can expect strong 
backing from Sweden and Britain, 
while countries such as Germany. 
Denmark, Italy and the Netherlands 
are likely to support moves towards 
greater liberalisation. Others, such 
as France. Spain. Portugal and Bel- 
gium, could well balk at the mare 
ra di cal measures. 

“There is a lot of opposition to 
most of the ideas. As things stand 
now there is not much room for opti- 
mism,” said an industry analyst. 
But, he added: “Don’t write Mr Kin- 
nock off He can be very persuasive." 


Move to computers defeats Swiss army 


By William Hall in Zurich 

The head of the Swiss army, 
which has not fought a war 
in 500 years, is stepping 
down following accusations 
that some of his top-secret 
battle plans may have fallen 
into enemy hands. 

General Arthur Uener, 60, 
who has commanded Swit- 
zerland’s 400,000-strong 
part-time army for four 
years, has announced he 
will retire at the end of 
1997, a year earlier than 
planned. 

No reason has been given 
for his departure but it is 
believed to be linked to the 
forthcoming publication of 
the findings of an investiga- 


THE FINANCIAL TIMES 
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tion into recents events at 
Switzerland’s ministry of 
defence. 

The probe followed con- 
cern two years ago about 
the behaviour of Colonel 
Friedrich Nyffenegger. He 
had been charged with over- 
seeing the army’s first foray 
into the computer age - put- 
ting all the information 
needed by Switzerland’s mil- 
itary high command on to 
CD-Rom computer discs. 

Until then the informa- 
tion, which ranged from 
troop deployments to battle 
plans, had been updated 
every year In two large 
books which were Issued to 
every senior officer. 

The CD-Roms were 


intended to cut costs and 
speed communication. 

The project seemed to be 
proceeding with typical 
Swiss efficiency until Col 
Nyffenegger’ s jilted wife 
Informed the authorities 
that some of her husband's 
CD-Roms may have fallen 
into the wrong hands. As 
any soldier knows, losing 
one’s equipment can be a 
court-martial affenefc 

At last count, Switzerland 
bad 148 fighter jets, 730 
combat tanks. 300 anti-tank 
guns, 1,800 mortars and 400 
CD-Roms containing the 
secrets of the army’s top 
brass. 

There were 100 red CD- 
Roms with the most secret 


information, and another 
300 with less sensitive infor- 
mation. 

When the authorities 
swooped on Col Nyffeneg- 
, gar's home they found two 
of the red CD-Roms along- 
side his other CDs in his 
music collection. The hap- 
less colonel was sent to jail 
and the army has still not 
been able to account for the 
whereabouts of all its CD- 
Roms. 

The army has played 
down the importance of the 
loss to the country’s 
national security. Battle 
plans have been changed 
and a new set of CD-Roms 
have been Issued. 

But the damage to public 


confidence has been consid- 
erable and conflicts with the 
stance of Mr^Adolf Ogi, 
army minister. ; who is a 
strong advocate of the motto 
that there should be “no 
shadow of a shadow" in the 
affairs of his department . - . 

Nevertheless, Gen Iiener’s 
derision to take responsibil- 
ity for the misdeeds of his 
subordinates has led to con- 
siderable sympathy. 

The Neue Zflrcher Zeitung 
newspaper, which has 
strong army ties, argued In 
an editorial yesterday that if 
politicians were to follow 
the general's example and 
resign whenever there was a 
problem It wonld be a “fatal 
development”. 


By Andrew Jade In Fanis . 

The French government 1®' 
considering allowing a nimw 
ber of private sector inves- 
tors to buy some of its 
shares in the state-owned 
GAN insurance group as 
part of a move to recapitalise 
and sell it off as soon as next 
year. 

The Initiative has the. 
implicit s u p p or t of the Euro - } 
pean Commission, which 
mentions the option in its. 
official Judgment on a previ- " 
ous recapitalisation of GAN 
carried out by the govern- 
ment last year, a draft of 
which has been obtained by 
the Financial Times. 

The Brussels judgment 
also sets conditions which 
are likely farther to fuel the 
controversy around the sale 
of the CIC banking group, 
which is controlled indi- 
rectly by the state through 
GAN, and which is currently 
being privatised by a trade 
sale. 

The document rules that 
an' injection into GAN in 
1995 of shares the govern- 
ment held in both the petro- 
leum group Elf Aquitaine 
and in CIC should be consid- 
ered as a form of state aid 
provided to the insurance 
group to the value of 
FFra^bn ($570m). 

However, it concludes that 
the aid was justified under 
European competition rules 
because it met the legal 
requirements of a restructur- 
ing of a company in diffi- 
culty. 

GAN last week reported 
losses of FFrlbn for the first 
half of the year, on top of 
heavy losses in 1994 and 
1995. These were largely 
related to its heavy exposure 
to loans in the property sec- 
tor incurred by a subsidiary 
of CIC which is now man- 
aged directly within the 
holding company. 

The Commission stresses 
in its judgment that its 
approval of the FFr2.9bn in 
French government aid is 
conditional an a restructur- 
ing of GAN and. among 
other factors , an the partial 
privatisation of CIC- 
It also says it “under- 
stands" that the CIC sell-off 
needs to respect a 
long-st anding partnership in 
which CIC sells GAN’S insur- 
ance products in the bank's 
branches. 

However, there is growing 
pressure on the Paris gov- 
ernment to postpone or 
abandon the CIC sale, in 
view of fears over both, the 
low value of the bids and the 
feet that the two potential 
purchasers are rival French 
banks - Socifete G£n6rale 
and Banque Nationale de 
Paris - which may pull CIC 
apart and jeopardise its links 
with GAN. 

GAN itself is believed to 
be pushing for the sale of 
CIC to be postponed until 
after its own privatisation 
has tak en pla ce, and after It 
has received a recapitalisa- 
tion of FFr5bn-FFrfjbn. Some 
of the latter it believes could 
be sought from a core group 
of private sector investors 
who would take the majority 
of the capital It favours a 
subsequent sell-off to the 
general public of the remain- 
ing shares. 

The Brussels derision also 
criticises the French govern- 
ment for the way in which 
the recapitalisation of GAN 
was carried out. It says it 
learnt about the rescue plan 
last year only by reading 
’ newspaper r e port s, and that 
it was forced to make 
i repeated requests over many 
l months for further infonna- 
I tion before being able to ana- 
lyse the rescue. 


Brussels clears 
Telekom offer 

The European Commission yesterday cleared a 
controversial plan by Germany^ soon to be privatised _ 
Deutsche Telekom to offer its business clients rebates of 
up to 49 per cent hi astatement, Mr Karel Van Miert, the 
«nw p <>Htirtw- m nwniMiffnw , . gai d the agreement was 
conditional on the conclusion ~6t retroactive network 
access agreements between Deutsche Telekom and its 
competitors by.December 32, on the German post and 

toieo twrimuTHnaHnna ministry taking additional regulatory 
steps required for competitive network access in the 
domestic market before that date: 

The rebate plan had been subject to complaints by 
competitors , which, include WorldCom of the US as well 
as subsidiaries of Veba, Viag and RWE. They claimed that 
Telekom and the ministry had foiled to fulfil the strict 
tprmq laid down by the Commission in June for the 
rebates to be allowed. AP. Brussels 

Telecoms investors may quit Ukraine, Page 3 

-Telefonica share warning 

The^hare value of Telefonica, the Spanish telecoms 
operator due to be fully privatised early next year, could 
collapsl*mless the government speeds up liberalisation of 
the -sector, Mr J uan vfllalonga, its chairman, said 
yesterday. He warned that any delay in opening Spain’s 
market by the January 1, 1998. deadline agreed by most 
EU countries wouldgprampt the European Comm i ssi o n to 
bar Telefonica from piembdtship.of Unisoorce, an alliance 
erf smaller European operators. 

A Unisource ban would have iw^mmediate effect on 
Telefonica’s share price. .“It eoul&fre§§®oce [the price] by 
15-20 per cent,” he said. - -. . 7T V : -' 

The gmra rairignt plans to sen its resuming 21 per cent 
stake in Telefonica early next year toVdisposal that 
wonld raise Pte505bn ($8.9bn) at current market prices. 
The share price, which, is trading close. record levels, 
loetPtaao yesterday to close at Pta2,66oJ A 20 per cent 
drop in its share value would knock close- to PtalOObn off 
what the government hopes to raise thm nffip the 
privatisation. TmnM ir ^- Madrid 


Romanians spoilt for choice in polls 

Virginia Marsh watches the final TV debate between 16 presidential hopefuls 



President Ion Iliescn: 
seeking third term 


Romania wrapped up a 
bitter two-month election 
campaign last night with a 
tense marathon television, 
debate between the 16 candi- 
dates in Sunday’s presiden- 
tial elections. 

Voters, who will also elect 
a new parliament, faced a 
dazzling choice. As well as 
Mr Ion Hiescu, the incum- 
bent, the debate included a 
faith-healer, a fiery national- 
ist who was one of the late 
Nicolae Ceaufescu’s favour- 
ite poets, the car owners’ 
party candidate, an ethnic 
Hungarian lawyer, a retired 
general and a heart surgeon 
called loan Pop de Popa. 

The debate, broadcast live 
from the deposed dictator's 
vast Palace of the People, 
also saw a rare meeting 
between Mr Iliescu, who is 


standing for a third term, 
and Mr Petre Roman, 
Romania's reformist first 
postrCommunist prime min- 
ister. The two men worked 
together closely in the after- 
math of Ceau^escu’s violent 
overthrow but have been the 
bitterest of enemies since Mr 
Roman's government was 
toppled by rampaging min- 
ers In 1991. 

Despite the many candi- 
dates, however, opinion polls 
suggest about three-quarters 
or voters will opt far repre- 
sentatives of the three main 
groups in both contests - a 
sign that the fledgling 
democracy’s fractured politi- 
cal scene Is maturing. 

While Mr Hiescu is ahead 
in the presidential polls, his 
Party of Social Democracy 
(PDSR), a leftwing group 


dominated by former Com- 
munists, is t railing thp oppo- 
sition Democratic Conven- 
tion, a centre-right coalition, 
in the parliamentary race. 
Mr Roman’s technocratic 
Social Democratic Union is 
in third place in both con- 
tests but hopes to join a Con- 
vention-led government 
Several small parliamen- 
tary parties, including the 
extreme nationalists and 
neoGommunista which have 
supported the PDSR's four- 
year minority government, 
are hovering around the $ 
per cent threshold needed to 
enter the new legislature. 

- In Last night’s debate can- 
didates were limited to 
answering questions and dis- 
cussing policy, in contrast to 
a campaign marked by 
insult-swapping, alleged 


dirty tricks and controver sy - 
over organisation of the elec- 
tions. 

In aggressive video-clips, 
Mr Qiescu’s campaign has . 
accused Mr Emil Constanti- 
nescu, the Convention's can- 
didate, of bring a closet mom 
artirist intent on returning ’ 
farmland to large landown- 
ers. Mr Roman, 'who is half- . 
Jewish, has faced anti-Se- 
mitic attacks while Mr' 
Ihescw h aR been heckled- and j 
booed by factory” ■' workers * 
who were once .solidly 
behind him. 

Mr Hiescu is expected to 
face Mr Cpnstantinescvv an 
academic, whom he defeated 
easily in the last elections 
four years ago, in what is 
likely to be a tightly con- 
tested run-off for the presi- 
dency on November 17. 


Italian growth forecast ciat 

The Bank of Italy yesterday offered a far more cautious 
estimate of economic growth next year than the 2 pfif cent 
projected by the centre-left government Its bi-annual\ 
economic bulletin says the sheer size of the budgetary 1 
measures due to be introduced next year are bound to \ 
have a negative impact on growth. It expects gross \ 
domestic product to be “about half that predicted by the % 
government. 

Tim bank confirms the view of most economists that 
depressed consumption and slack domestic demand, 
against a background of weaker export markets, will 
restrict this year's growth to under 1 per cent. 

Hie two-stage 1997 budget, due to be voted on in the 
chamber ed deputies thta month, afrn«; to find L62£00bn 
($41bn) in spending cuts and fre sh taxes. This is 
equivalent to removing 3 per cent of gross domestic 
product from the economy. The bank further paints out 
that additional corrective measures will be required in 
1998 to the tune of L27,000bn. 

Far the first tune in many years, the bank is more 
sanguine about inflationary trends. It says inflation next 
year should be below 3 per cent, although wage demands 
would need to be moderated. Robert Graham. Rome 

Stet chief ‘investigated’ 

The head of Italy's state telecommunications holding. 

Stet, and the third highest official in the tax police were 
yesterday placed under investigation in a corruption 
probe, state television reported, quoting judicial sources. 

It said magistrates in the north-western town of Aosta 
alleged that Stet managing director Mr Ernesto Pascale 
was Involved with a secret group set up to try to influence 
public and government a ppo in t m ents. 

Tax police chief of staff Nicolo Pollan was repor t ed to 
be mider investigation as an accessory. The deputy head 
of the tax police, Michele Mola, was recently placed under 
investigation for the same offence, Italian media reported. 
Magistrates allege that both tax police officials tipped off 
a member of the separatist Northern League party that 
his telephone was bugged. 

Mr Pascale issued a statement saying; “I can’t even 
imagine what hypothesis this Investigation is based on. 
There’s never been anything secret tn my life and I am 
sure that this can be demonstrated as quickly as 
possible.” Mr PoHari called the investigation 
“bewildering”. Reuter. Rome 

French film director dies 

Marcel Came, director of the French Him classic Les 
Enfimts du Paradis . died yesterday aged 90. Camd 
pioneered the French “film noir", winning widespread 
acclaim in the 1930s and 1940s. and worked consistently 
for three decades after the second world war. He won) 

' widespread acclaim for Q uai des Brumes and Hotel du 
Nord in the 1930s and 1940s, but will probably be 
remembered best for Les Enfants du Paradis, starring * 
Arletty, Pierre Brasseur and Jean-Louis Barrault, which 
. dvb&ed the street IHeDf Paris in the mid-19th century. 

. He was hit by the end of his partnership with 
sc ript w ri ter and poet Jacques Prevert in 1947. and then by 
the arrival of the French “new wave” in the late 1950s 
which rejected his classical style of film-making. His 
post-war career was plagued by critical and commercial 
setbacks. “The last couple of films I made were not a 
success. I didn't want to become academic and dry," he 
said. - Reuter. Paris 

ECONOMIC WATCH 

EU inflation at low level 

European Union inflation 
! in September remained at 

• r i ■ -v' • . . : . v the record low level it 
-fe ~ a ' v '~ reached in August, rising 

at an annualised rate of 2.3 
' : / x . per cent, Eurostat reported. 

- V | r - V In September last year 

, ’-rt Inflation stood at per 

r ^ cent Nine of the 15 EU 

j countries registered rates 

; ■'! V.; at or below 2 per cent, with 

Sweden performing best at 

. ■ .- -■ 'Vi virV-V- 0.2 per cent and Greece 

.?** ~ r . ~ - T — worst. with inflation of &5 

percent. Reuter, Brussels 
i ftj -;.-.- - -- -t •' :i; r ; ■ Greece's first-half 

: ; Iso current account deficit 

Vnrrrv nafMtitlii '' ' U - jumped by 47.3 per cent to 

...” 7 ‘ $£l5bnu according to the 

- Bank of Greece. Although thehalahc* of payments gap 
widened l^oifiy 3^ per ram to $g«fIm T -recript8 from . 
invisibles showed a sharp decline. Imports increased by 
2Aper teat; to $iL8bn, while exports were flat at £L8bn- 
The surplus on invisibles fell by 10.6 per cent to $5.7bn. 
Income from tourism was down 14B per cent to $l.4bn, 
while transfers from the European Union dropped by 8^3 
per cent to'KL2bn because of the slow rate of 
disbursement of grants for Infrastructure improvements. 

Kerin Hope. Athens 

■ Finland '8- gross domestic product rose 2.1 per cent 
year-on-year in August. 

■ Unemployment in Norway fell to a seasonally adjusted 
3-6 per cent in October from 3.9 per cent in September. 












i 







THE Vf-. 


- - ;r»RDAN 


financial times 


FRIDAY NOVEMBER 1 1996 


NEWS: EUROPE 


Telecoms investments in 
Ukraine under threat 


By Matthew Kaminski 
in Kiev 

Two of tbe largest foreign 
investments in Ukraine are 
in jeopardy after the govern- 
ment last month raised tar- 
iffs and changed licensing 
requirements for cellular 
telephone operators. 

The changes have ham- 
strung plans by a joint- 
venture company called 
Ukrainian Mobile Communi- 
cations (UMC) - formed in 
1992 by Ukrainian Telecom, 
Deutsche Telekom. PTT 
Netherlands and TeleDan- 
mark - and separately Moto- 
rola of the US to operate 
GSM cellular services in 
Ukraine. 

The dispute highlights the 
difficulties faced by foreign 
companies in Ukraine, which 
has attracted barely $lbn in 
investment since 1991, one of 
the lowest per capita figures 
tn the region. 

UMC shareholders, at a 
meeting on Tuesday in . 
Copenhagen, warned the 
company would rethink its 
$300m commitment planned 
over the next three years 
unless the Ukraine govern- 
ment honours what it claims 
is a binding promise made in 
a 1992 licence to award it a 
GSM frequency. . 


The Ukrainian cabinet moved yesterday .to open up the 
lucrative gas distribution business next year under 
pressure from President Leonid Kuchma, writes Matthew 

KamlngVj 

Mr Knnhmn implicitly criticised tbe current scheme, 
which gives two influential companies. United Energy 
Systems CUES) and Item, a virtual duopoly, by telling 
Xnierfax-Ukrame news agency on Wednesday that the 
distribution market should become competitive. 

The U krainian leader .made the statement after a 
meeting with Hr Rem Vyakharev T the head of Gazprom, tbe 
Russian gas monopoly. It appears directed at Mr Pavlo 
Lazarenko, the prime minister. His position i«« been 
undermined by allegations that he personally benefits 
from his involvement with UES amj other business 
interests. 

Tbe charges coincide with the growing ifr fi nery of 
officials from Dniprupetrovsk, a large industrial city in 
eastern Ukraine, within the government since Mr 
Lazarenko took over in May. Both tbe prime minister and 
Mr Kuchma are from Dnepropetrovsk. 

With an an n ual turnover of $5bn, UES this year won a 
government mandate to handle ssibn cubic metres of 
natural gas, nearly half the 58.13bn cubic metres imported 
each year. Itesra supplies 18.4 6bn cubic metres. 


- Motorola, which got its 
GSM licence through a joint- 
venture with Ukrainian 
Radio Systems (URS) that 
was formed last year, has 
plans to invest $50Qm over 
the next 15 years. 

UMC officials are alleging 
the Kiev government 
changed the rules in order to 
push out western competi- 
tors from the growing 
mobile telephone business. 


Neither UMC nor URC 
were allocated GSM frequen- 
cies on time in September. 

Instead, thw Ukrainian cab- 
inet said all mobile tele- 
phone operators must renew 
their licences before the new 
year and set tariffs for radio- 
frequency use several times 
above regional standard. 

Mr Martin Dirks, general 
director of UMC, said the 
company had already made 


a $9Qm investment - $l 2 m 
alone to test out GSM tech- 
nology - in a risky country 
on the assumption that the 
GSM frequency would be 
allocated and reasonable 
rates set. UMC had a local 
monopoly until last year. T 
hope tbe Ukrainian govern- 
ment understands that when 
investors lose trust in a 
country It will have serious 
repercussions on its image 
abroad," he said. 

Ukrainian offiHaig counter 
that the government has no 
contractual obligation and 
can enact new licensing pro- 
cedures. 

“We don’t have a govern- 
ment guarantee signed by 
President Leonid) Kuchma,” 
said Mr Gregory Perchatsch. 
Motorola's country manager. 
“But we have promises that 
they would be allocated fre- 
quencies.” 

Two other companies, BK 
Telekom of Yugoslavia and 
Kiev Star, a Ukrainian com- 
pany, last week were 
awarded GSM licences. Tbe 
frequencies may now be 
awarded by another means, 
such as a tender. 

UMC officials said nifg fur- 
ther un d e rmin ed tin* initial 
agreements. "There’s only 
room for two” GSM opera- 
tors. said Mr Perchatsch. 


Famous Paris cultural attraction to close for 2 years 

Centre a 
victim of 
its own 
success 


By Andrew Jack in Paris 

Just 20 years after It was 
opened, one of Paris' best 
known cultural attractions 
is to largely close down or 
transfer most of its activities 
to allow for wide-ranging 
renovations due to last for 
two years. 

The Georges Pompidou 
centre, at the heart of the 
French capital and one of 
the most visited tourist sites 
In Europe, is to launch an 
ambitious reconstruction 
programme set to cost 
FFr440m ($86m). 

The changes should offer 
relief to visitors to tbe cen- 
tre who in recent years have 
faced the prospect of fre- 
quent break-downs in its 
moving escalators, and the 
sight of peeling paint and 
widespread rust on its 
famous multi-coloured exter- 
nal pipework. 

They come at a time when 
a number of Paris* leading 
public monuments con- 
structed in the last few years 
are running into difficulties, 
including the new Bastille 



The Pompidou Centre, 20 years old and receiving a facelift 


opera house and tbe Grande 
Arche at La Defense to the 
west of Paris, both of which 
are suffering from cracking 
marble on their & cades. 

The repairs stand in stark 
contrast to the apparent 
durability of many of the 
city's longer established 
buildings, such as the Com6- 
die Franpaise, which has 
lasted more than 200 years 
without more than modest 
periodic facelifts. 

However, officials unveil- 
ing the Pompidou’s plans in 
Paris yesterday were at 
pains to stress that the modi- 


fications to the centre were 
in no way a criticism of the 
original design, and that 
structurally the building was 
entirely solid. Their aim was 
to increase the internal 
space available. 

Mr Guillaume Cerutti. 
director general of the cen- 
tre, said: “In many ways, the 
building Is a victim of its 
own success.” He pointed 
out that in place of the origi- 
nal estimates of 5,000 visi- 
tors a day, there were up to 
25,000. with an average of 8m 
a year or 160 m since it 
opened in 1977. 


He also stressed that dur- 
ing the renovations - the 
pace of which has been 
accelerated - one large exhi- 
bition space, as well as the 
external stairway offering 
panoramic views across 
Paris, will remain open, with 
the library moving nearby. 

The plan is to ensure that 
the centre will re-open ahead 
of the millennium, when the 
huge digital clock counting 
down the seconds to the year 
2000 which stands at its 
entrance will have theoreti- 
cally reached zero on Its 
counter. 


Spanish television market engages in bitter political battle 


GlobaJ television groups 
seeking to secure alliances 
in the Spanish market are 
being presented with a frac- 
tured industry that pits big 
domestic players against 
each other in a poisoned 
political atmosphere. 

At stake is the launch 
early next year of digital sat- 
ellite services with local and 
Latin American partners 
which are estimated to gen- 
erate a free . cash flow of 
Pta36.6bn ($285m) In Spain 
and earnings of Pta2i.4bn on 
sales of PtaloSbn at the end 
of 10 years. 

These projections are 
based on the formation of 
one digital infrastructure 
serving close to 3m domestic 


Tom Burns on why potential global partners are closely following developments 


subscribers. The income esti- 
mates are much higher for 
broadcasters and program- 
ming providers if the ser- 
vices embrace the Spanish- 
speaking world. 

The problem is that two 
digital platforms are being 
planned. Aside from damp- 
ening profit forecasts, the 
rivalry has confused pro- 
spective partners. There is 
no feasible working arrange- 
ment at present so we are 
talking to everyone," said an 
executive of one US pro- 
gramming company. 

The list of potential for- 
eign. players who are closely 


following Spanish develop- 
ments is a long one. It 
includes US companies 
DirecTV, the digital broad- 
caster which is part of the 
Hughes Electronic Corpora- 
tion, Time Warner, and 
Venezuela's Cisneros group, 
which is one of the world's 
largest producers and dis- 
tributors of Spanish-lan- 
guage programmes, Mexico's 
Televisa network, tbe UK 
satellite company British 
Sky Broadcasting that is 40 
per cent-owned by Mr 
Rupert Murdoch’s News Cor- 
poration and Germany’s Leo 
Kirch group. 


One platform, due to start 
services in January, is being 
promoted by Sogecable, the 
broadcaster controlled by 
Grupo Prisa, the main 
domestic media company 
and the publisher of the 
vnflw«»nti»i topselling news- 
paper El Pals. A second, 
which plans to begin operat- 
ing in March, is being led by 
Telefdnica, the national tele- 
coms company that is 21 per 
cent state-owned and due to 
be privatised next year. 

TelefSnica announced yes- 
terday that it had contracted 
relays with Hispasat, the 
Spanish satellite that it part 


owns together with other 
state-controlled companies, 
in order set up its digital 
Infrastructure. “This is a 
strategic project for us,” said 
Telefonica chairman Mr 
Juan VUlalonga. 

Two weeks ago Sogecable 
signed a relay deal with 
Astra, the French satellite 
system, and said its decod- 
ing equipment would be sup- 
plied by France's Canal Plus 
which is one of the Spanish 
broadcaster’s biggest share- 
holders. In a dear bid to lead 
Spain's move into a new tele- 
vision business, Sogecable 
said it would make an initial 


investment of PtaSObn. 

DirecTV, one of Sogeca- 
ble’s initial backers, was 
understood yesterday to be 
reassessing its affiance with 
Grupo Prisa in the light of 
Telef6nica’s aggressive bid 
to enter the sector. “We are 
conducting feasibility 
studies with Sogecable but 
there is no firm agreement,” 
the California-based broad- 
caster said. 

Ironically Telefonica and 
Grupo Prisa, which pio- 
neered pay TV in Spain 
seven years ago with Canal 
Plus Espafia, a network that 
has now some L5m subscrib- 


ers, had signalled a 
far-reaching agreement early 
this year to jointly develop 
cable television. However, 
this arrangement fen foul of 
general elections in March 
that brought the centre-right 
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replacing the Socialist party. 

The political change ended 
what critics of Grupo Prisa 
claimed was tbe advanta- 
geous position enjoyed by 
left-le aning media group dur- 
ing the years of Socialist 
rule. When Mr Villa] onga, a 
former investment banker 
and a school friend of prime 
minister Mr Josh Marla 


Amur , was appointed by the 
new government to run the 
telecoms company, he aban- 
doned the cable project and 
repositioned Telefonica into 
a Grupo Prisa rival for the 
di gi tal business. 

Mr Villalonga's supporters 
say the venture is an intelli- 
gent defensive move against 
foreign telecoms groups 
seeking a backdoor entry 
into Spain via Sogecable. 
But critics say he is spear- 
heading a government cru- 
sade to keep the hostile 
Grupo Prisa out of the indus- 
try. They believe this overtly 
political battle will reduce 
the operator’s investor 
appeal as it approaches full 
privatisation. 







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Helms dies hard 
in North Carolina 

Ageing political streetflghter looks odds 
on to win a fifth term in the US Senate 


NEWS: AMERICAS 


A last-minute advance appears to be bad news for Dole 

Nowhere man 


Perot shows 
a late surge 



Lacklustre Perot doubles support of two weeks ago 


By Jurek Martin in Boston 

Late in the 
day. Mr 
Ross Perot, 
candidate of 
his own 

Reform 
Party, may 
finally be 
making 
some waves 
in this 

year's presi- 
dential elec- 
tion, to be 
decided on 
Tuesday. 

He has begun to nudge 
into double digits in some 
national public opinion 
polls, apparently benefiting 
more than Mr Bob Dole, the 
Republican candidate, from 
the scathing attacks both 
have launched against Presi- 
dent Bill Clinton's ethical 
standards. 

He has even challenged 
the president to an election 
eve debate on the acceptance 
by Mr Clinton and his Demo- 
cratic Party of contributions 
from foreign sources. 


By Christopher Parkes 
in Los Angeles 


The White House politely 
declined the overture on the 
grounds that the president 
was otherwise engaged. 

Mr Perot also inserted 
himself into the widely 
watched Senate race in Mas- 
sachusetts by coming to Bos- 
ton to endorse Republican 
Governor Bill Weld, who is 
locked in the tightest of con- 
tests with Mr John Kerry, 
the incumbent Democrat. 

His mini-surge in the polls 
to double the support of two 
weeks ago still brings Mr 
Perot to barely half the 19 
per cent of the popular vote 
he took as an independent 
candidate four years ago. 

But final pre-election poll- 
ing then, giving him 12-14 
per cent, underestimated his 
eventual appeal. 

His advance appears bad 
news for Mr Dole, whose 
mantra long has been that a 
vote for Mr Perot is. in 
effect, a vote for Mr Clinton, 
especially in those states 
where the two main contend- 
ers are close. Last week Mr 
Dale even unsuccessfully 
invited Mr Perot to with- 


draw from the race but got 
the back of the Texas billion- 
aire's hand in response. 

In Massachusetts Mr Weld 
had appeared to have drawn 
level with Mr Kerry prior to 
their eighth and final debate 
in Boston on Monday night. 
But a combination of the 
senator's arguments directed 
at women voters and the 
governor's relentless assault 


on his opponent's ethics 
seems to have helped Mr 
Kerry, who had re-opened a 
6-point lead in a small sam- 
ple Boston Globe poll. 

Mr Perot's endorsement of 
Mr Weld was delivered in 
typical fashion. Giving a 
speech, he kept the governor 
waiting off stage for 
a good hour while he 
laid into the “huge 


moral, ethical and criminal 
problems” facing Mr Clinton 
and the "rotten corrupt prac- 
tices” in the money-raising 
techniques used by both par- 
ties. 

But he finally described 
the governor as a “doer” 
who “got rid of the red ink" 
in Massachusetts, which 
nobody in Washington, he 
said, knew how to do. 


By Jurek Marten in 
Greensboro, North Carolina 

H e is 75 now and 

looks it. A heart 

condition has 
slowed him down, a bone 
disease has turned his long 
stride into a shuffle, he 
wears hearing aides in both 
ears and his complexion, 
once ruddy, appears waxen. 

But it would be premature 
to assume that political 
mortality is necessarily 
catching up with Mr Jesse 
Helms, much as his legion of 
foes might wish it. They 
include American liberals, 
US trading partners, any 
developing foreign country, 
especially those with 
regimes even slightly to the 
left of centre and. to the last 
bureaucrat, the state 
department in Washington. 

They do not, however, 
constitute the electorate of 
North Carolina. Some doubts 
may remain but the odds are 
that on Tuesday he will be 
returned for a fifth term in 
the US Senate where he will 
again act as scourge of the 
left at home and overseas, 
enemy of foreign aid and 
sponsor of controversial 
legislation. like the 
Helms-Burton act punishing 
foreign companies for 
trading with Cuba. 

It is always instructive for 
students of politics to 
observe a Helms election. 
This time, as in 1990, he is 
opposed by Mr Harvey 
Gantt, former mayor of 
Charlotte, a successful 
architect, an energetic and 
fluent campaigner - and 
black. 

His approach had been a 
little different from six years 
ago, when Mr Gantt led 
early before being swamped 
by a tidal wave of negative 
advertisements, many 
r unning close to the line of 
overt appeals to racial 
prejudice. Mr Helms won by 
53-47 per cent, about the 
average for his victory 
margins from 1972 onwards. 

His new campaign team, 
according to Mr Dan Gurley, 
political director of the state 
Republican Party, sought to 
portray a “kinder, gentler 
Jesse," right down to 
pictures with his 
grandchildren and much 
emphasis on the 
"statesman's" role he had 
assumed in Washington as 
chairman of the foreign 
relations committee. His 
own appearances were kept 
to a minimum and his 
speeches short 
But even with a lead 


bordering on 10 points, the 
old Helms dies hard. Over 
the last week a new round of 
TV commercials has hit the 
air waves, accusing Mr 
Gantt of firing advantage of 
“minority privileges" to win 
state contracts for his 
architectural business- 

“He’s more subtle tha n he 
used to be." observed Mr 
Ned C-line. the veteran 
political commentator on the 
Greensboro News and 
Observer. “Thirty years ago. 
he would not have hesitated 
to use the n-word." 

Mr Gantt, in good form at 
a rally outside High Point 
this week, insists Mr Helms 
is going “negative" in order 
to avoid discussion of the 
real issues. Even Mr Gurley 
concedes “some debate” in 
Republican circles over the 



Helms: age and disease have 
not seen him off 


wisdom of a change in tack 
that has gone down poorly 
elsewhere in the country. 

But Mr Helms always 
plays hard ball in elections. 
Alone of statewide 
candidates, he has refused to 
participate in an innovative, 
but controversial, 

experiment in issue-oriented 
“civic journalism" 
undertaken this year by 
several North Carolina 
newspapers. 

They took an extensive 
state opinion poll to identify 
voter concerns and sought to 
follow through by tilting 
their coverage, often pooled, 
to those deemed most 
important. Candidates were 
asked to submit to two long 
interviews on the issues, one 
early in the year, the second 
at the start of the campaign 
proper. 

Mr Gantt agreed, if 
reluctantly, but not Mr 
Helms, never a friend of the 
press. At his only public 


appearance on Tuesday, on 
the edge of a vast Wal-mart 
parking lot in Sanford, he 
was briefly besieged by 
reporters. “Why not sit down 
with us for just 20 minutes?" 
one local begged. “Why?" he 
replied and stepped Into his 
bus. Naturally he has also 
refused to debate Mr Gantt. 

It is a tactic that works in 
North Carolina, where the 
“liberal media," state and 
national, is held in unusual 
contempt. That sense, deftly 
stoked by Mr Helms, has 
been heightened by what the 
state generally considers an 
unconscionable attack by 
the Clinton administration 
and its press “allies" on its 
second largest industry - 
tobacco. 

No North Carolina 
politician interested in 
w inning takes on tobacco 
with impunity - and Mr 
Helms is Its staunchest 
supporter. Even popular 
Democratic Governor Jim 
Hunt, assured of re-election 
on Tuesday, talks of 260.000 
jobs in tobacco and has filed 
suit against the 
administration’s proposal to 
place the industry under the 
jurisdiction of the Federal 
Drug Administration. 

It also helps Mr Heims 
that the population influx 
into his booming state - 
700,000 since 1990 - has 
turned out to be more 
Republican than Democrat. 
Mr Gurley claims his party 
has gained 140,000 new 
registered voters in the last 
four years, while the 
Democrats have lost 70.000. 

In 1994 that helped the 
state elect eight Republican 
congressmen and four 
Democrats, the reverse of 
the previous representation, 
and gave Republicans 
control of the lower house of 
the local assembly for the 
first time. 

Some of the newcomers, 
especially from the north, 
may find their new senator 
an unfamiliar breed of 
politician, almost an 
anachronism in matters of 
race, but that has been local 
sentiment for years. The 
North Carolina truism is 
that 40 per cent will back Mr 
Helms always and 40 per 
cent never, leaving elections 
decided by the remainder. 

So age and infirmity do 
not appear to work against 
Mr Helms. And after all, 
across the bonier in South 
Carolina, Senator Strom 
Thurmond, 93. is tottering 
happily towards an eighth 
term. 


California Latinos find their voice 


C alifornia's quiet minority - 
the Latinos who make up a 
quarter of the state's popula- 
tion - have found their voice. It will 
be heard in an unprecedented chorus 
in next week's presidential, congres- 
sional and state legislature elections. 

A record 1.4m are expected to vote. 
25 per cent more than in the 1992 
poll which brought President Bill 
Clinton to power. All but 20 per cent 
of them favour the Democrats, 
according to the Tomas Rivera Pol- 
icy Institute, a regional think tank. 

Their votes are probably not criti- 
cal in tiie main race, where latest 
samplings show Mr Clinton still 
handsomely ahead of Mr Bob Dole, 
but their 10 per cent share of total 
votes in the state represents a valu- 
able resource for Democrats hoping 
to regain control or Congress. 

It is an even more powerful lever 
in Mr Clinton's party's efforts to 
regain control of the evenly divided 
state assembly, where the Republi- 
cans control the balance of power 
through their occupation of the 
speaker's chair. 

In the longer term. Latino advo- 
cates suggest. California’s November 
5 voting patterns may clarify trends 


of national significance in a country 
which in 10 years will see citizens 
with Latin American origins or 
ancestry displace African-Americans 
as the country's largest minority. 

According to Mr Fernando Guerra, 
an academic analyst from Loyola 
Marymount University'. Latino sup- 
port Is now more clearly in the Dem- 
ocrat camp than at any time since 
1976 when the group's voting pat- 
terns were first monitored. He calcu- 
lates at least 40 city councils in the 


state are mostly Latino. 

For years, with exceptions such as 
the stoutly Republican Cuban group. 
California's Latino vote has showed 
few distinct political tendencies 
despite the innate conservatism of a 
religious, hard-working and socially 
introspective community. 

In the past, the turnout has tended 
to under-represent the group. But 
now, grassroots issues and candi- 
dates have emerged which may 
serve to galvanise this reticent slice 
of the electorate. 

Democrats have done relatively lit- 


tle actively to court support. Rather 
they have found votes driven in 
their direction by leading Republi- 
cans. including Mr Pete Wilson, the 
state governor, and Mr Bob Dole, the 
Republican presidential challenger, 
who have strongly supported initia- 
tives on issues widely perceived as 
anti-immi gran L 

These include opposition to bilin- 
gual education, a looming state ref- 
erendum on a proposal to end affir- 
mative action to benefit minority 


students and workers, and existing 
measures to exclude illegal immi- 
grants from public education and 
health services. 

Mr Jesus Silva Herzog, the Mexi- 
can ambassador in Washington, ech- 
oed widespread resentment when he 
said the presidential campaign had 
generated an “anti-immigrant atmo- 
sphere, with a certain flavour of 
being anti-Mexican." 

Another proposal on next week's 
Californian ballot sheet, to raise the 
state's minimum wage, is also 
expected to bring out a higher pro- 


portion than usual of Latinos. 

In one rural area, widely touted as 
the make-or-break seat for Republi- 
can control in the Sacramento 
assembly, Latina Democrat Ms Lily 
Cervantes faces the Republican 
incumbent, Mr Peter Frusetta. Ms 
Cervantes lost the race last time by 
700 votes, since when 5,000 Latinos 
have registered as Democrats. 

But most eyes are on an appar- 
ently uneven struggle developing in 
the 46th Congressional district 
where half the population is Latino. 

Here, in deeply conservative 
Orange County, another Latina 
Democrat candidate with no political 
experience faces a right-wing tough- 
guy who set the tone by accusing his 
opponent of attending a gay-spon- 
sored fundraiser organised by “sod- 
omites.” Ms Loretta Sanchez, a 
Republican until 1992. has been lav- 
ished with financial support from 
gay groups, environmentalists, pro- 
choice advocates and supporters of 
every cause Mr Robert Daman, the 
resilient Republican incumbent, so 
robustly denounces in Washington. 

Polls say the race is too close to 
calL This suggests Ms Sanchez has 
quickly found substantial support 
among moderate Republicans, but 
the decisive portion of the vote could 
well rest in the bands of Latinos. 


A record 1 .4m Latinos are expected to 
vote and 80% favour Democrats 



Brazil crash stirs safety fears 


A Brazilian jetliner crashed 
into a residential area of Sao 
Paulo yesterday, killing all 
95 people aboard and raising 
new questions over the 
safety of air travel in the 
region, writes Jonathan 
Wheatley in S&o Paulo. 

The death toll was expec- 
ted to rise as firefighters 
searched homes struck and 
sot on fire by the crash. 

The Fokker F-100 airliner, 
operated by TAM. a domes- 
tic airline which recently 
expanded into international 


services, crashed shortly 
alter taking off for Rio de 
Janeiro. 

Witnesses said the jet clip- 
ped two small apartment 
buildings before crashing in 
names into 10-15 houses. 
Buildings and cars were set 
on fire by burning fuel 
escaping from the aircraft 
idler Its first impact. Many 
residents had already left 
home for the day. 

Mr John MacDonald of 
Aviation Management Ser- 
vices in Miami said the 


increase in accidents in 
South America in the past 
two years reflected the 
growth in air travel in the 
region. 

“With the number of 
flights increasing as it is, the 
rate of accidents is bound to 
go up." he said, adding that 
TAM was a modem airline 
with a good safety record. 

Officials said the cause of 
the crash would not be 
known before the aircraft's 
two night recorders had 
been examined. 


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Hard-pressed Mexico delays the 
start-up of private pension funds 


By Leslie Crawford 
in Mexico City 

The start-up of private 
pension funds In Mexico has 
been delayed for six months. 
The move, coupled with 
backtracking over the priva- 
tisation of the petrochemical 
industry, has raised con- 
cerns about the govern- 
ment's ability* to deliver fun- 
damental economic reforms. 

Private pension fund 
companies, known as Afores 
in Mexico, were due to open 
shop in January 1997. 
However, the government 
obtained congressional 
approval this week to delay 
their launch until next July. 

The official explanation 
for the postponement was 
that time was needed to 
design a new identification 
code for pension accounts, 
despite the fact that all 
working Mexicans already 
possess a social security 
number. 

Some economists said the 
delay would save the 
government a lot of money 
In 1997, a year in which 
Mexico will still be 
recovering from the deep 
recession of 1995. Mr 
Guillermo Ortiz, finance 


The Mexican currency 
showed signs yesterday of 
stabilising at around 8 pesos 
to the dollar, following a 
month-long slide In which 
the currency has depreci- 
ated by 6 per cent, Leslie 
Crawford reports from 
Mexico City. 

On Wednesday, the spot 
rate for the peso closed at a 
historic low of 7.995 to the 
dollar. It weakened further 
on Thursday, opening trade 
at 8.0525 before rallying to 
close at 7.97 against the dol- 
lar. 

Mexico's central h ank has 
sought to stabilise the cur- 
rency by increasing 


minister, has es tima ted the 
annual cost of Mexico’s 
social security reforms at 
around 1 per cent of gross 
domestic product, or about 

$2-5bn. 

This is- because the 
government will have to 
continue paying for the 
pensions of lm retired 
Mexicans after workers 
switch their contributions 
from the state-run system to 
individual retirement 
accounts managed by 
private-sector fund 


short-term interest rates, 
but the peso has not 
responded to a rise in the 
benchmark rate for 28-day 
treasury bills to almost 30 
per cent from 23 per cent in 
early October. The peso's 
volatility has also scared off 
foreign portfolio investors: 
Mexico City’s stock 
exchange index has fallen 
by 8 per cent in nominal 
terms since the high point of 
the year on August 27. 

The peso's depreciation 
has not been accompanied 
by the panic which affected 
Mexico’s financial markets 
last year, as most econo- 
mists believe the currency’s 


administrators. Last week. 
Mr Ortiz said the cost of the 
reforms would open a budget 
deficit of 0.5 per cent of GDP 
in 1997. 

The postponement of 
pension reforms will delay 
President Ernesto Zedillo's 
goal of raising Mexico's 
dismal domestic saving rate, 
which has made the country 
too dependent on foreign 
capital flows to finance 
economic growth. 

Mexico's domestic savings 
rate fell to below 16 per cent 


slide is temporary. 

Mr Paulo Leme, a senior 
economist at Goldman 
Sach’s in New York, believes 
the peso remains underval- 
ued by about 13 per cent 
against the dollar. “The dis- 
turbances which have 
affected the peso are tempo- 
rary." Mr Leme said. “The 
peso should continue to 
appreciate over the next 12 
months." 

Mexico's tight monetary 
policy, hi gher-th an -expected 
oil revenues, and the grad- 
ual accumulation of interna- 
tional reserves were factors 
that ought to strengthen the 
currency. Mr Leme said. 


of GDP in 1995, a level 
considered too low to 
spearhead significant 
growth. 

Chile, which privatised its 
pension system 15 years ago, 
boasts an internal savings 
rate of 27 per cent of GDP as 
well as one of the highest 
growth rates in Latin 
America. 

The decision to postpone 
the launch of private 
pension funds has annoyed 
several financial groups 
which were looking forward 


to signing up customers in 
January. 

Mr Juan Fernandez Casas, 
director of an Afore 
joint-venture between Serfin, 
Mexico’s thtrd-largest bank. 
Citibank and the Chilean 
pension fund administrator 
Habitat, said yesterday: “The 
delay is not welcome from a 
business point of view; it 
will be an additional cost to 
our Investment outlays." 

Mr Fernimdez Casas said 
Serfin and its partners 
planned to spend an initial 
$70m to set up the pension 
fund management business, 
including the cost of hiring 
some 6,000 sales agents. 

Other financial groups 
have announced similar 
outlays. Banamex and 
Ban comer - Mexico's two 
largest banks, have lined up 
foreign insurance companies 
Aegon and Aetna as partners 
in the pension fund 
business. 

Banco Santander and 
Banco Bilbao Vizcaya of 
Spain have also expressed an 
interest in offering pension 
schemes in Mexico - a 
business which analysts 
estimate could be generating 
more than $l7bn In savings 

by the turn of the century- 


Alfonsin begins come-back bid 


By David Pilling 
in Buenos Aires 

Argentina's former president 
Mr Raul Alfonsin launched 
his push to be a candidate in 
the 1999 presidential elec- 
tions during a rally at which 
he accused the Peronist gov- 
ernment of “transforming 
Argentina into a colony" and 
promoting a savage free- mar- 
ket system of "every man for 
himself'. 


Mr Alfonsin, 69, on 
Wednesday night proved 
that rumours of his political 
demise were exaggerated by 
drawing a crowd of 30,000 

supporters to a Buenos Aires 
football stadium. Adopting 
his famed rhetorical style, be 
said Argentina’s economic 
policy was being decided in 
Washington, and that the 
government's adoption of 
unfettered neo-liberalism 
was destroying jobs 


and regional economies. 

Ostensibly to mark the 
anniversary of his 1983 elec- 
toral victory, which returned 
Argentina to democracy 
after seven years of dictator- 
ship. the rally was aimed at 
resurrecting the former pres- 
ident's political fortunes. Mr 
Alfonsin was last year 
replaced as leader of the 
Radical party by Mr RodoUb 
Terragno alter a disastrous 
1995 presidential campaign. 



The Industrial Credit and Investment 
Corporation of India Limited 

Zwlth House. Keshavraa Khade Mars. Mahatexml, Mumbai 400 034, tndta. 
EXTENSION OF LAST DATE OF OFFER FOR 

sale/takeover/merger of a company engaged in 

MANUFACTURE OF WHITE CEMENT AT RAJASTHAN VIDE 
AN ADVERTISEM ENT RE LEASED IN THIS PAPER ON 
SEPTEMBER 3, 1996 

The last date for submission ol bids for sale/takeover/ 
merger of ihe above-mentioned company is hereby being 
extended from October 31. 199B to November 30. 1 996. 







By Nancy Dunne . . . 
in Washington 

The International Finance 
Corporation, the private sec* 
tor arm of the World R*mic 
this week announced its first 
foray in Vietnam’s ffnan/Ho] 
sector - the establishment of 
a leasing company to enable 
small and medium-sized 
companies to procure capital 
goods. 

On the surface the $i5m 
loan and *750,000 equity 
investment looks modest. 
However, the corporation 
has. been promoting leasing 
as one of the quickest, 
cheapest and most flexible 
ways of supporting business 
in emerging economies, 
where businesses desper- 
ately need machinery, office 
and plant equipment. 

The EFG is planning to 
sign a joint venture deal on 
November 12 to set up the 
first leasing company in 
Egypt. 

The joint venture partners 
are the National Bank of 
Egypt; Commercial' Interna- 
tional Investment Company 
and' Orix Corporation of 
Japan and Orix Leasing 
Pakistan. Orix has been 
working actively with the 
IFC to introduce leasing 
around the world. 

The new Vietnamese com- 
pany. Vietnam International 
Leasing Company (VHX), is 
expected to write leases of 
$25.000-530, 000 for smaller or 
micro enterprises and 
*100,000-$150;000 for medium- 
sized companies. IFC says 
VILC will have “a strong 
impact on Vietnam's finan- 
cial sector by extending and 
improving credit delivery 
and introducing . new finan- 
cial products to the local 


market to encourage capital 
■formation and investment.” 
It will be based in Ho Chi 
Minh. City and frnWaUy serve 
. the surrounding region, 

IFC has been working 
closely with governments, 
advising them on leasing 

regulations, recruiting spon- 
sors and technical partners 
and ' Investing in new loagiTig 
companies. 

In Vietnam IFC launched a 
technical assistance opera- 
tion in 1991 and helped offi- 
cials develop a legal frame- 
work for licensing and 
regulation. 

An IFC paper, issued in 
August, said one-eighth of 
the world's private invest- 
ment was financed through 
leasing. Its share is soaring; 
in some countries it provides 
as much, as one-third of the 
private investment 

IFC has helped set up leas- 
ing companies in over half of 
the developing countries. In 
August it provided *5.6m in 
financing to help establish 
Uzbek Leasing International, 
the first specialised leasing 
company in Uzbekistan. 

The corporation also helps 
leasing companies, in which 
it has equity, to expand. Last 
March it guaranteed a local 
currency loan of $3m equiva- 
lent for the Industrial Devel- 
opment Leasing Company of 
Bangladesh, established in 
1986. 

IFC's involvement allows 
the company to borrow 
locally for a longer period 
than otherwise would be 
possible. 

IFC’s first leasing venture 
was in 1977 in Korea. The 
Korea Development Leasing 
Corporation is now the 
world’s fifth largest leasing 
industry. 


WORLD TRADE NEWS DIGEST 

Airbus A3XX 
engine deal near 

Airims industries ti»Buropean aircraft manufacturing ] 

consortium, is within days of signing memoranda of 
understanding to develop engines for its planned ASXX 
super-jumbo with Rolls-Royce of the UK and an alliance of 
General Electric and Pratt & Whitney of the US. Both R-R 
and the US consortium will be obliged to develop new 
engines to equip .the four-engined jet The engines will 
also be designed to power new “stretched’* versions of the 
747 jumbo planned by Boeing of the US- . 

An Airbus spokesman said: “We are talking to both the 
General Electric/Pratt & Whitney grouping and 
Rolls-Royce about the A3XX- We will be able to sign an 
MoU pretty soon." 

Both groups are expected to base their engines on 
super-large engmesdesigned to power the Boeing 777, a 
wide-bodied twirfjet, and its Airbus rival, the A330. 

Rolls-Royce is Set to offer a new engi ne , the Trent 900, 
with around BtoOOIbs of thrust. GE and Pratt have formed 
an alliance to jointly develop an engine for the Boeing 
aircraft, and are expected to offer the same power plant . 
or a derivative, for the A3XX. Ross Tieman, London 

Investment into India boosted 

India’s Foreign Investment Promotion Board yesterday 
cleared 63 foreign investment proposals worth a total of . 
$694m. sus taining a recent drive by the four-month-old 
United Front government to accelerate such approvals. 

The cleared projects include two in the consumer goods 
sector, one for Cadbury Schweppes, the drinks and 
confectionery group, to establish a 100 per cent owned 
soft drinks venture in Bombay, and another for Gillette, 
the US personal products group, to take a 49 per cent 
stake in a shaving bJ ate project .-•••■ 

’ Clearance was also given to De Beers Consolidated 
Mines, the Twining group.' to ta ke a-50 per cent share in a 
* 15 xn diamond mining project Mark Nicholson, New Delhi 

EU transit system reprieve 

A complete collapse of the TTR international transit 
system for lorry freight in Europe was narrowly averted 
this week when the two main German hauliers; 
associations were persuaded to continue operating the 
scheme after declaring their intention to puB out 
However, the United Nations Economic Commission for 
Europe, which oversees the TIR convention, warned 
yesterday that the scheme would remain under threat 
without longer-terin measures to combat growing 
problems of fraud and smuggling. 

P The German hauliers* associations, AIST and BDF, had 
said they, would no longer honour TER pay 

customs duties because, of delays and uncertainties In 
i obtaining reimbursement from the International Brad 
Union OBU) and 

decision was rescinded after negotiations with the 
of red tape. 

ADB aid for Bangladesh 

The Asian Development Bank (AD Bjfaad^ ered 


^^r^rv^rtoy Ba^adesh. suffering a big power 

"it cSSgbX electricity from tohla as a 

by a 

GoVer “ Den * M*nllA-based ADB that visited 
mission ***“ progress erf bank-funded 
®^^^m^o^tionX^esh Nationalist 

however, have 

party (BNP^some TOUl(i ^ 

strongly opposed argumK - 

electricity . Energy countrv’s demand for 

seminar this s oooMWby the year 2000 and 

electricity would nse to 3,000 mw oy w * Dhaka. 

4,600 MW by 2005. 


L ess than two months 
before the arrival of 
its first foreign 
guests, the new Gran Hotel 
at Cuba's premier tourist 
resort of Varadero still looks 
more like a building site 
than a four-star beach hoteL 
Surrounded by scaffolding, 
raw concrete- and construc- 
tion debris, the hotel’s 
Cuban manager, Mr Alexis 
FerrioL smiles nervously 
when asked whether all will 
be ready to receive the first 

scheduled busload of tourists 

on December 15. “The hotel 
is already sold through tour 
operators,” be said. 

Bust over a former holi- 
day camp for Communist 
Young Pioneers - a sign of 
the changing times in Cuba 
- the Gran Hotel is an exam- 
ple of the frenzied but 
erratic pace of new hotel 
construction on the island, 
which desperately needs to 
maximise hard currency 
tourism revenues to help 
bolster economic recovery. 

The communist govern- 
ment's strategy to transform 
Cuba into a big Caribbean 
tourist destination has pro- 
duced a growing crop of 
joint ventures and manage- 
ment contracts with 

foreign hoteliers, mostly 
from Europe and Canada. Up 
to now these investors seem 
generally undeterred by US 
legislation aimed at curbing 
foreign investment on the 
island. 

Following a rebuke from 


Brazil 
urged to 
pursue 
liberal 
measures 


By Frances WiBiams 
in Geneva 

Brazil’s trading partners 
yesterday welcomed the 
country’s overall progress 
towards economic stabilisa- 
tion and a more liberal trad- 
ing regime but raised a host 
of complaints over protec- 
tionist measures in specific 
sectors, notably the car 
industry. 

Members -of the World 
Trade Organisation * con- 
cluded a two-day discussion 
of a WTO secretariat report 
on Brazil’s trade policies 
and practices by urging per- 
severance with economic 
reform and resistance 
to protectionist pressures 
despite the difficult adjust- 
ment problems caused by 
radical economic restructur- 
ing. 

The WTO report says uni- 
lateral tariff cuts and other 
trade liberalising measures 
introduced by Brazil in the 
early 1990s have been a key 
element behind its subse- 
quent economic gains. 

However, moves since 
1995 to restrict certain 
imports and s u pport exports 
have made the trade system 
more, complex and less 
transparent. These “poten- 
tially trade-distorting mea- 
sures” reflect “lapses in 
implementation rather tha n 
a policy reversal,” the WTO 

suggests. 

The report argues that 
Brazil ’s large current 
account and merch a n d ise 
trade deficits may be doe to 
an overvalued exchange rate 
following introduction of 
the Beal Plan in' udd-1994. 

The plan, which ent infla- 
tion from 5.000 per cent in 
the 12 months to July 1994 
to an estimated 10 per cent 
this year, has prompted 
large inflows of foreign capi- 
tal- 

The WTO report is partic- 
ularly critical of Brazil’s 
complex tariff s tructure and 
frequent tariff adjustments, 
which . have not been 
improved by membership of 
the Mercosur customs union 
with Argentina, Uruguay 
and Paraguay. 

It also notes an increased, 
recourse to anti-dumping 
ami safeguard measures to 
keep imports out, including 
recent safeguard actions on 

textiles and toys. 

Meanwhile, protection far 
the domestic car industry, 
estimated to be equivalent 
to tariffs of 250 per cent, has 
been stepped up despite Bra- 
zil’* position as a large net 
vehicle exporter. • • j 

Japan and the US, backed 
by Canada, the European 
Union and South Korea, 
have already-brought formal 
WTO complaints against the 
new measures which give 
tariff breaks to domestic 
producers. . 

In August Brazil intro- 
duced low-tariff quotas for 
vehicle imports from Japan, 
Korea and the EU to a bid to 
defuse criticism - but the 
WTO complaints have not 
been withdrawn.' - ■ 


A hotel nears completion. Cuba hopes to double capacity to nearly 50,000 rooms by 2000 


President Fidel Castro about 
the sluggish pace of hotel 
building last year, Cuban 
construction brigades are 
straining to complete a tar- 
get this year of around 5,000 
new rooms, more than a 
third of them at Varadero. 75 
miles east of Havana. But 
although the pace has picked 
up, delays persist 

On the less-developed east- 
ern side of Varadero, a . 12 - 
mile beach peninsula on 
Cuba’s northern coast, half a 
dozen new hotels, some still 
unsightly skeletons, are rap- 
idly emerging from the tropi- 
cal vegetation. 

The hotel construction 
schedule was tight even 
before Hurricane Lili lashed 
Cuba with high winds and 
heavy rain on October 17 


and 18. Although the bad 
weather disrupted work for a 
few days, Cuban tourist 
authorities reported with 
relief that big beach resorts 
such as Varadero, Cayo Coco 
and Cayo. Largo suffered 
only minimum superficial 
damage which was quickly 
repaired. 

Deputy tourism minister 
Miguel Brugueras said Cuba 
was maintaining its target to 
achieve a new record of lm 
tourists this year. Tourist 
arrivals up to September 
totalled 715,800. nearly 38 per 
cent more than the same 
period last year, he added. 

The government says it 
urgently needs to raise tour- 
ism receipts to even higher 
figures, not only to help 
finance economic recovery 


but also to offset a balance 
of payments squeeze caused 
by rising costs of essential 
imports and a downturn in 
world prices of more tradi- 
tional exports such as sugar 
and nickel. 

The Cuban tourism indus- 
try is seeking to lift 1995 
gross tourism receipts of 
gl.lbn to $1.3bn this year. 
Most visitors came from 
Canada, Italy, Spain, Ger- 
many and France. These 
remain Cuba's main mar- 
kets, in the absence of US 
tourists, barred from visiting 
by Washington’s longstand- 
ing economic embargo. 

Authorities in Varadero 
are moving to clear up the 
construction debris before 
the November start of the 
main tourist season. 


Another sort of cleaa-up 
has already taken place. 
After declaring Varadero a 
special tourist zone, police 
launched a crackdown 
against hundreds of prosti- 
tutes who worked the resort. 
And following complaints 
from foreign hoteliers, they 
also shut dozens of private 
home restaurants and taxis 
and prohibited Cubans from 
privately renting out accom- 
modation. 

This accentuated Varader- 
o's image as a kind of tourist 
“ghetto**. But tourism has 
boosted local living stan- 
dards by providing jobs and 
access to hard currency. 

The new Gran Hotel 
belongs to Cubans can, 
Cuba’s biggest tourism cor- 
poration. which along with 
other Cuban companies has 
entered selective joint ven- 
tures and management con- 
tracts with foreign partners. 
These include Spain’s Sol- 
Melia group and Tryp 
Hotels, Jamaica's Super- 
clubs. Germany’s LTI-Later- 
national Hotels. Delta Hotels 
of Canada, Italy’s Venta 
Club, Golden Tulip of the 
Netherlands and France's 
Club Mediterran£ and Accor. 

“What do we seek from 
foreign investors? Fast 
growth, know-how, access to 
foreign markets and the use 
of internationally known 
names." said Mr Mario Sort, 
Cubanacan vice-president. 

Foreign investor interest 
does not appear to have been 


seriously blunted by the US 
Helms-Burton law. intro- 
duced on March 12 and 
which threatens sanctions 
against companies judged to 
be “trafficking’' in expropri- 
ated, formerly US-owned 
properties in Cuba. 

In April, an Anglo-Dutch 
group. Vital, signed a deal to 
help build a five-star hotel in 
Varadero. In July, a Cana- 
dian entrepreneur, Wally 
Berukoff. clinched a $400m 
deal to construct 11 hotels in 
Cuba. 

More recently, another 

Canadian group. Journey's 

End, is understood to have 
agreed a similar big contract 
to refurbish, build and man- 
age several hotels. 

Spain’s Sol-Melid group, 
whose three joint venture 
hotels in Varadero are 
believed to occupy at least 
part of land once owned by 
the wealthy US Dupont fam- 
ily. says It has so far 
received neither claims nor 
sanctions under the Helms- 
Burton law. It is expanding 
operations, but two other 
Spanish groups. Paradores 
Na cion ales and Occidental 
Hotel es, are reported to have 
halted investment plans. 

Cuba's tourism develop- 
ment programme foresees 
doubling the existing 25,000 
hotel rooms to nearly 50,000 
by the year 2000, with an 
estimated overall investment 
of £L7bn. 

Pascal Fletcher 


Global chip market ‘will grow by 7.4%’ 


By Louise Kehoe 
in San Francisco 

The global semiconductor 
market win grow by 7.4 per 
cent next year to $138.8bn, 
reversing a 10 per cent drop 
this year, according to the 
annual Semiconductor 
Industry Association fore- 
cast 

, The US industry trade 
group said that world 
chip sales were expected to 
return to strong double-digit 
growth in 1998 and that 
world - sales should top 
$200 bn by 1999. 

Although the annual fore- 
cast has seldom proved accu- 
rate, it is a reflection of ris- 
ing optimism throughout the 


semiconductor industry fol- 
lowing a year in which the 
market has shrunk for the 
first time in over a decade. 

As recently as 1994. the 
global chip market was just 
over SlOObn. so the 1999 fore- 
cast suggests a doubling in 
sales over a five-year period. 
“1996 is merely a blip on the 
industry's phenomenal 
growth record." said Thomas 
Armstrong, president of the 
SLA 

“Long-term prospects for 
the chip industry are still 
excellent because the world 
has a ravenous appetite for 
the electronic equipment 
that relies on semiconduc- 
tors," he said. 

“Over time, chips will 


become even more critical 
parts of the world economy 
than they are today." 

In 1995, chip sales jumped 
41.7 per cent. This year’s 
market decline is largely a 
reflection of sharp declines 
in the prices of Dynamic 
Random Access Memory 
(D-Ram) chips, which 
account for about 20 per cent 
of the chip market. 

D-Ram prices will continue 
to fell in 1997, the industry 
group said, although at a 
more moderate pace than 
over the past 12 months. 

In contrast, sales of micro- 
processor cbips, the brains 
of personal computers, are 
growing rapidly. 1996 sales 
will be up 17.5 per cent, to 


$l6.7bn. and will rise by 23 
per cent next year to top 
$20bn. the industry group 
predicted. 

Much of this rise reflects 
booming sales for Intel, the 
world's largest semiconduc- 
tor manufacturer. 

Industry executives noted 
that excluding Intel from the 
market data would produce 
a very different picture of 
the industry’s health. 
Growth in microprocessor 
sales is expected to account 
for about two thirds of the 
total anticipated sales 
growth in 1997. 

US chip sales will rise by a 
modest 5.8 per cent in 1997 to 
$44J2bn, the industry group 
projected. The region will 


remain the world's largest 
chip market. 

In Japan sales are expec- 
ted to bounce back in 1997 
with 6.6 per cent growth to 
achieve sales of $36bn. 

The Asia-Pacific region, 
excluding Japan, is the fast- 
est developing semiconduc- 
tor market and is expected 
to overtake Japan as the sec- 
ond largest regional market 
by 1999. 

Next year. Asia-Pacific 
sales are expected to rise by 
11.6 per cent to almost $30bn. 

European sales are expec- 
ted to grow by 6.7 per cent 
next year to $2S-Sbn- 

Europe currently repre- 
sents about 20 per emit of 
total world sales. 


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6 


FINANCIAL times 


FRIDAY NOVEMBER l 1996 


ASIA-PACIFIC 


US sanctions 
threat angers 
Malaysians 


By James Kynge 

In Kuala Lumpur 

Malaysia, whose national oil 
company faces possible US 
sanctions for investing in 
Iran, yesterday said that it 
would use "international 
forums” to challenge Wash- 
ington's threat to impose 
penalties on companies 
investing in the Islamic 
state. 

“We are a sovereign 
nation. . . We will not submit 
to US dictation,” Dr 
Mahathir Mohamad, the 
prime minister, said. 

The US has threatened to 
impose sanctions under the 
Iran-Libya Sanctions Act, 
passed in August, on compa- 
nies that invest more than 
$40m a year in the oil and 
gas sectors of the two coun- 
tries. 

Petronas. Malaysia’s state 
oil company, has agreed to 
take a 30 per cent stake in 
two oilfields in Iran. The 
total investment required to 
develop the two fields was 
estimated at $600m. 

Although Petronas has not 
made public the exact 
amount of its proposed 
investment in Iran, analysts 
estimate it will exceed the 
ceiling set by the US. 

Malaysian officials have 
tried to play down Petronas’ 
Involvement in Iran but the 
issue was re-ignited this 
week by comments by Mr 
Gregg Rickman. legislative 
director at the office of US 
Senator Alfonse D' Amato, 
who said the Malaysian com- 
pany should face sanctions. 

Ms Rafidah Aziz, Malay- 
sia's minister for interna- 
tional trade and industry, 
told reporters yesterday that 
Malaysia would question 
Washington's right to take 
action against companies on 
the basis of what they 



Mahathir: ‘will not submit’ 

did in third countries. 

“This is not an issue of 
Petronas, but a matter of 
principle." Ms Rafidah said. 
“The US has no right to 
impose extra-territorial juris- 
diction on other countries.” 

Ms Rafidah added that 
Malaysia would raise the 
issue at the Asia Pacific Eco- 
nomic Co-operation (Apec) 
su mm it in the Philippines 
this month. The issue may 
also be raised at a World 
Trade Organisation (WTO) 
meeting in Singapore in 
December, she said. 

The WTO meeting is 
already expected to be the 
scene of heated exchanges 
because of Washington’s 
insistence that social and 
labour reform should accom- 
pany trade liberalisation. 
Washington argues that east 
Asia's rules on wages and 
labour give some regional 
countries unfair cost advan- 
tages in trade. 

The ringgit, Malaysia's 
currency, dropped slightly 
against the US dollar yester- 
day partly because of fears 
of worsening relations over 
the Iran sanctions issue, 
dealers said. 


HK doubts raised over immigration row 


By John Ridding 
in Hong Kong 

Retirement is supposed to bring a 
more peaceful life. But that is 
unlikely to be the case for Mr Laur- 
ence Leung. 

The Hong Kong director of immi- 
gration has become the centre of 
speculation since he resigned sud- 
denly from his post this summer. 
Controversy about his departure, 
and claims of a cover-up, have 
prompted the establishment of a 
select committee in the legislature 
to examine the case. The first 
meeting win take place next week. 

For the government - which has 
trumpeted its improved transpar- 
ency and implemented political 
reforms which created Hong 
Kong's first elected legislature - 
the affair threatens an uncomfort- 
able scrutiny. Pulling down the 
shutters could set a troublesome 
example as the territory prepares 


to return to Chinese sovereignty in 
July next year amid fears of 
reduced accountability in the 
a dminis tration. 

Sensitivity Is increased by the 
importance of immigration issues 
ahead of the handover. With the 
government stepping up efforts to 
secure approval from diplomatic 
partners for visa-free access for 
holders of the territory’s post-1997 
passports, the probe comes at an 
awkward time. 

In comments made earlier this 
month in the Legislative Council 
Mrs Selina Chow, a legislator from 
the pro-business Liberal party and 
a member of the select committee, 
said it was essential that allega- 
tions be addressed. “Unless the 
matter is cleared up this will be 
damaging to the administration 
and to Hong Kong." While the 10 
legislators pursuing the case 
remain guarded on details of the 
affair, attention has focused on Mr 


Leung's relations with China and 
reports be may have passed infor- 
mation about the British national- 
ity scheme to mainland officials. 

The scheme, implemented after 
Beijing’s bloody suppression of pro- 
democracy demonstrations in 1989. 
offered passports to 50.000 promi- 
nent Hong Kong residents and 
their families. Beijing demanded, 
unsuccessfully, that it be given 
information on civil servants 
included in the scheme. Any leak- 
age of names, it is feared, could 
have a damaging effect, particu- 
larly if information included names 
of unsuccessful applicants. 

“Instead of boosting confidence it 
would have the opposite effect," 
said someone involved in lobbying 
for the scheme. 

Using parliamentary privilege in 
the session called to vote on the 
establishment of a select commit- 
tee, Mrs Chow also cited reports 
that information on Chinese dissi- 


dents in Hong Kang might have 
been passed across the border. 

The government has dismissed 
such claims. “Fanciful specula- 
tion," said Mr Lam Woon-kwong. 
secretary for the civil service. 
Rejecting the view that public 
interests are involved he has rig- 
idly maintained the official line 
that Mr Leung departed for per- 
sonal reasons with mutual consent 
between employer and employee. 

Such a solid stance, however, has 
failed to dissuade Hong Kong legis- 
lators. “The circumstances were 
very unusual,” said Mr James To 
of the Democratic party, referring 
to the fact that the usual notice 
period was waived for Mr Leung. 
He added that the government 
sought to dissuade legislators from 
pursuing the issue. 

Intrigue was fuelled by the. fact 
that Mr Leung's departure was 
accompanied by the tersest of 
statements and without any cus- 


tomary praise. Pressed to com- 
mend the former immigration 
chief, Mr Chris Patten, the gover- 
nor. said merely that “he worked 
for many years for the Hong Kong 
government". Mr To and his col- 
leagues pledge to press until more 
information is revealed. But they 
face some difficult obstacles. 

Under section M of the Legisla- 
tive Council's powers and privi- 
leges ordinance, officials can reruse 
to testify, with a decision on 
whether they must ultimately rest- 
ing with the attorney -general. Per- 
haps more significantly, the gover- 
nor's assent is required for 
witnesses to give evidence relating 
to the security of Hong Kong. 

That, said one committee mem- 
ber. might obstruct investigations. 
But, she argued, it would also fuel 
suspicions. "You cannot claim per- 
sonal reasons are involved and 
.then turn around and say it is a 
matter of security." 


IMF deal a boost for Bhutto 


By Farhan Bokhari 
in Islamabad 

The successful conclusion of 
talks between P akistan and 
the International Monetary 
Fund to resume lending 
under a $ 600 m standby loan 
is the first bit of good news 
in months for the belea- 
guered government of Prime 
Minister Benazir Bhutto. 

The news boosted the 
Karachi stock market, with 
the 100 -share index rising 
22.05 points, or 1.53 per cent, 
on the back of the IMF 
agreement. 

The new finan ce minister, 
Mr Naveed Qamar, who was 
appointed this week after Ms 
Bhutto gave up the portfolio 
which she has held since 
coming to power three years 
ago, said: “This welcome 
development should put an 
end to the speculative behav- 
iour of some vested interests 
against the economic well 
being of the nation." 

Mr Antonio Furtado, who 
led the IMF team in Islama- 
bad, said the resumption of 



Antonio Furtado, IMF mission chief (left), and Naveed 
Qamar, P akistan 's new finance minister, yesterday muter 


the standby loan could be 
followed by reviving a 
extended structural adjust- 
ment facility (Esaf) next 
year, if Pakistan met all the 
performance targets. Pakis- 
tan concluded a three-year 
$1.5bn Esaf with the IMF 
that began in February 1994, 
but payments were 
suspended a year later 
because Islamabad felled to 


achieve many targets. On 
the stand-by loan, the Fund 
is likely to release two 
delayed tranches, worth 
about $ 80 m each, “as soon as 
humanly possible". 

The Fund's decision to 
suspend the loan after what 
it regarded as Pakistan's un- 
satisfactory budget in June 
had triggered widespread 
economic anxiety. Foreign 


exchange reserves have 
plummeted to $700m from 
$i.7bn In June - enough for 
3-4 weeks' imports - while 
the rupee has been devalued 
twice in recent months, 
mostly recently by 7.86 per 
cent last week. 

In response to IMF pres- 
sure, the government intro- 
duced earlier this month an 
emergency austerity budget, 
which included spending 
cuts and a 10 per cent 
increase in oil .product 
prices. The government 
pledged to cut the budget 
deficit to 4 per cent of gross 
domestic product, though 
analysts consider this ambi- 
tious. 

In spite of Mr Qamar’s 
optimism yesterday, there 
remain doubts within the 
IMF and the opposition 
whether the government will 
be able to press ahead with 
the most unpopular compo- 
nents of its budget. These 
include a farm income tax 
which has angered the politi- 
cally powerful agricultural 
landowners' lobby. 


Vietnamese press starts to 
taste the fruits of freedom 


Vietnam: a 
growing hunger 
for accurate 
in fo r ma tion 


W hen Vietnamese 
film star Le Cong 
Tuan Anh commit- 
ted suicide by taking an 
overdose of anti-malaria pUls 
this month, his fans were 
not the only ones to get 
excited. Two Ho Chi Minh 
City-based newspapers 
snapped up the story, devot- 
ing whole pages to the 
drama of a failed relation- 
ship that drove him to death. 

They sent reporters along 
to his funeral at a pagoda 
where a crowd or 100,000 had 
gathered. There were scuf- 
fles and a wall collapsed. 
The Communist party offi- 
cials ordered coverage to be 
toned down. But by then the 
two papers - Tuoi Tre 
(Youth) and Nguoi Lao Dong 
(Workers) - had achieved 
their desired aim: their cir- 
culation doubled. 

This is the new face of the 
media in Vietnam, where the 
country's 10 -year experiment 
with economic liberalisation 
has brought great change to 
the formerly staid media. 

YeL as in the case of Mr 
Anh. the authorities have 
not given up all their old 
ways. Yesterday the authori- 


ties, in effect, expelled the 
Hanoi correspondent of the 
Far Eastern Economic 
Review, the first time the 
country has got rid of a for- 
eign correspondent since It 
allowed foreign news organi- 
sations to establish reporting 
bureaux in 1990. 

Domestic newspapers 
have, in any case, been 
forced to change because of 
a cut in state subsidies to 
many newspapers and televi- 
sion stations that previously 
had relied on handouts from 
Hanoi. Now, many are adopt- 
ing tactics more familiar to 
European tabloids than to 
socialist state censors in a 
bid to boost readership and 
revenue. 

According to SRG Viet- 
nam, a Ho Chi Minh City- 
based foreign research 
group, advertising spending 
in Vietnam Increased to 
almost $150m from about 
$30m over the last five years. 
Competition is fierce: there 
are about 350 newspapers 
and magazines nationally. 
About 90 publications have 
been launched since 1990. 

But Hanoi is not entirely 
happy with this develop- 


ment. The challenge for the 
party is how to cope with a 
media that, through com- 
mercialisation, is becoming 
more responsive to its read- 
ership at a time when the 
party's desire to control 
remains undiminished. 

Vietnam does not require 
its media to submit material 
for censorship before publi- 
cation. Instead, the Commu- 
nist party appoints what it 
considers as ideologically 
reliable editors-in-chief to 
each organisation. They are 
responsible for ensuring that 
coverage toes the party line. 

U nder Vietnam’s 
press laws, newspa- 
pers are not allowed 
to criticise “the achieve- 
ments of the revolution” and. 
party leaders. 

Journalists are also 
required to be "responsible", 
although the term is not 
defined. 

Nowhere is the issue more 
contentious than at Tuoi 
Tre. It is the best example of 
a newspaper that has suc- 
cessfully ma n aged to tread a 
delicate path between state 
censorship and bold cover- 


age of social issues and, on 
occasion, party scandals. 

A few years ago one of its 
former editors was sacked 
for running an article dis- 
cussing whether Ho Chi 
Minh had a wife. The former 
president's private life is 
taboo in Vietnam. 

Yet Mr Nguyen Son 
Phuoc, Tuoi Tre's current 
deputy editor and a party 
member, has managed to 
turn it into one of the most 
successful newspapers, 
through successful manipu- 
lation of party contacts and 
sound business acumen. 

The paper rents out office 
space to Volvo of Sweden 
and Nestle of Switzerland at 
a building in central Saigon. 
It has its own printing press 
and plans to invest flOm 
next year in real estate, con- 
struction materials and a 
hospital 

His paper has been at the 
forefront of attempts to 
wean journalists off reliance 
on the bureaucracy for infor- 
mation. “if you get informa- 
tion from the government, 
it's not enough. You're just 
han g ing your bead against a 
closed door," he says. 



Newspapers like Tuoi Tre 
may be pushing editorial 
boundaries to a degree, but 
it is too early to speak of 
editorial freedom. Corrup- 
tion scandals are pursued in 
the press only after the 
party has given its approval. 

Foreign and Vietnamese 
companies often Include 
cash in press packs as a way 
of ensuring favourable cov- 
erage of their activities. 


This, coupled with the obses- 
sive secrecy with which the 
bureaucracy still treats most 
kinds of information, is 
likely to ensure Vietnam's 
newspapers will shun issues 
sensitive to the party and 
stick to what pleases most 
people - stories about film 
stars. 

Jeremy Grant 



Mandarin Oriental, Manila . 

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Airline strike likely to 
embarrass Philippines 


By Edward Luce in Manila 

Philippine Airlines (PAL.) 
yesterday threatened some 
9.000 striking employees 
with summary dismissal if 
they failed to return to work 
today on All-Saints Day - 
one of the most important 
religious holidays in the 
country's calendar. 

The warning escalates the 
dispute just three weeks 
before Manila plays host to 
the Asia Pacific Economic 
Cooperation (Apec) leaders' 
summit. 

The Philippine govern- 
ment says the Apec trade 
forum is the most Important 
international meeting to be 
held in the country since the 
IMF-World Bank meeting in 
1976 and is keen to avoid 
embarrassments. President 
Suharto of Indonesia and 
President Jiang Zemin of 
China are among 18 leaders 

attending. 

Manila's airport, which Is 
being spruced up for the 
arrival of is Apec heads of 
state, could suffer heavily if 
the strike persists. President 
Fidel Ramos has so far 
refused to intervene. 

A spokesmen for Mr Lucio 


Tan. chairman of the priva- 
tised airline who recently 
won a court battle with 
minority government share- 
holders to gain majority con- 
trol of the national flag car- 
rier. dismissed the walk-out 
as a “wildcat" strike. Most of 
PAL’s maintenance and 
ground -handling crew are on 
strike. 

“PAL management has 
advised striking personnel to 
return to work not later 
than Friday. November 1 
or be deemed terminated 
from the company." said an 
airline statement yester- 
day. 

Government officials, who 
have had running battles 
with Mr Tan over alleged tax 
evasion in hts beer and 
tobacco subsidiaries, yester- 
day expressed concern over 
the possible ramifications of 
the walk-out. 

• Human rights activists 
have challenged in the 
Supreme Court the govern- 
ment's decision to deny a 
visa to Mr Jose Ramos- 
Horta, Nobel peace prize 
winner. 

The government refused a 
visa to the East Timorese 
activist on the grounds that 


he would pose a “threat to 
national security" and 
undermine Manila's rela- 
tions with Indonesia before 
the Apec summit. 

Indonesia has faced wide- 
spread international criti- 
cism over human rights 
abuses in East Timor. 

Mr Ramos-Horta was to 
have attended a parallel 
summit on Apec next month. 
The petition to the Supreme 
Court was submitted by 
Philippine human rights 
groups yesterday. 

Critics, including leading 
senators and Cardinal Jaime 
Sin. doyen of the 1986 “peo- 
ple power” revolution which 
overthrew the dictatorship 
of Ferdinand Marcos, accuse 
the government of betraying 
the country’s democratic val- 
ues. 

The government - which 
earlier this week leaked a 
blacklist of other activists 
who would be refused entry, 
including Mrs Danielle Mit- 
terrand. widow of the late 
French president, and 
Bishop Carlos Beio, joint 
Nobel peace prize w inn er 
from East Timor - said it 
was giving priority to the 

national interest. 


China rejects 
Wang critics 


By Tony Walker in Beijing 

China said yesterday the 
sentencing of a prominent 
dissident to 11 years’ jail had 
nothing to do with human 
rights and was strictly a 
legal procedure. 

“The trial of Wang Dan is 
entirely a Chinese legal pro- 
cedure carried out In accor- 
dance with the law," said Mr 
Shen Guofang, the foreign 
ministry spokesman. “It has 
no connection with human 
rights or other issues.” 

Mr Wang's sentencing has 
drawn strong protests from 
western governments and 
Internationa] human rights 
organisations. He was jailed 
for allegedly seeking to over- 
throw the government - a 
crime which carries the 
death penalty. 

His family said he would 
appeaL but it is extremely 
rare under the Chinese jus- 
tice system for judgments to 
be overturned or for sen- 
tences to be commuted. 

“We are angry he received 
such a heavy sentence even 
though he was innocent," 
said Mr Wang Xlanzeng. Mr 
Wang Dan's father. “Wang 
Dan said he wants to appeal. 
He feels everything that he 
has done has been above- 
board. . . it was all for Chi- 
na's democratisation. “• 

Mr Wang’s harsh sentence 
deals a further serious blow 
to China's flickering dissi- 


dent movement. Beijing has 
rounded up leading dissi- 
dents systematically over 
the past year in an apparent 
effort to silence criticism. 

China yesterday also 
launched a strong attack on 
western journalists, accusing 
foreign reporters of lacking 
an understanding of Chinese 
conditions and engaging in 
biased reporting. It com- 
pared the present generation 
unfavourably with Edgar 
Snow, the American reporter 
who recorded early stages of 
the Chinese revolution. 

“In his reportage. Edgar 
Snow wrote exactly what he 
witnessed.” said the official 
China Daily. “What the west- 
ern media is doing is the 
opposite of what Edgar Snow 
did 60 years ago. 

“One may ask why there 
have been 60 many disap- 
pointing reports by western 
journalists.” it said, adding: 
“One clue lies in the fact 
that those journalists do not 
know what is really going on 
in China." The world press 
has, almost universally, con- 
demned the sentence. 

Britain, France and the US 
have strongly criticised 
China. A French official 
said: “France notes with dis- 
appointment that China does 
not take account of Euro- 
pean- feelings and- concerns. 
France adds its voice to all 
those requesting a revision 
of this judgment on appeal.” 


ASIA-PACIFIC NEWS DIGEST 


Thailand trade 
gap narrows 

Thailand's large current account deficit has dipped below 
the psychologically Important level of BtSObn ($l.l8bn) for 
the first time in six months, suggesting the country's 
economic woes may be easing, according to figures 
published yesterday by the central bank. The deficit 
shrank for the fourth month in a row to Bt29.3bn in 
August from Bt31bn in July. 

However, rapidly slowing export growth this year has 
forced the Bank of Thailand further to trim its growth 
forecast this year to 7.8 per cent, the slowest rate of 
annual growth in more than a decade. Exports grew by a 
slow 2.4 per cent in the first eight months of this year, 
reinforcing the belief that the year-end figure would fall 
short of the government's already reduced growth target 
of 10-2 per cent export growth. 

Manufacturing activity did pick up for a second 
consecutive month in August and there was also a modest 
expansion in foreign reserves to Bt39.5bn from Bt39.4bn in 
July. The Stock Exchange of Thailand index climbed 4.22 
points to 910.33. William Barnes in Bangkok 

Property businessman charged 

Mr Prasong Panichpakdee. nhairnian of one of Thailand's 
biggest property companies, Somprasong Land, was 
yesterday charged with doctoring financial statements 
and breaking laws designed to protect customers. 

Som pros ong' s ambitious expansion ran headlong into the 
greatly over-supplied Bangkok residential property 
market after its flotation in 199L The Bank of Thailand, 
the central bank, yesterday sought to calm nerves by 
insisting St was not worried that struggling property 
companies might damage the banks and finance houses 
that lent them money. William Barnes. Bangkok 

Indian warning to Pakistan 

India yesterday warned It would review the “entire 
gamut” of bilateral relations with Pakistan should it fail 
to protect I n dia n diplomatic staff in Islamabad, the Press 
Trust of India said. It said the Indian warning ntmo after 
Pakistan suggested the two estranged neighbours should 
call a “truce" on picking off each other's officials. 

Meanwhile a non-diplomatic official of India's embassy 
In Islamabad returned with his wife to New Delhi after 
being ordered to leave Pakistan. Mr Ashok Kumar Wahl's 
return came a day alter Indian police arrested Mr Hafiz 
Mustataque Khosa, a nan-diplomatic staff member of the 
Pakistani High Commission on charges of spying in New 
Delhi. The tit-for-tat expulsions came a month after 
P akis t an and India ousted diplomats from each other's 
capitals for alleged spying. AFP, New Delhi 

Bangladesh sell-off planned 

Bangladesh's Securities and Exchange Commission chief 
yesterday said the government would sell up to 2 bn taka 
($4 7m) worth of shares in state-owned companies listed on 
the Dhaka stock exchange by the end of fiscal 1996-97 to 
beef up the stock market. "The government as a first step 
will privatise the companies which are already listed with 
the Dhaka Stock Exchange to increase the market depth," 
Mr Haroonur Rashid said. He said the government would 
sell its stakes in all multinational companies, which 
number about eight by December. Reuter. Dhaka 






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FRIDAY NOVEMBER 1 1996 



NEWS: INTERNATIONAL 


W orld Bank 


management 
criticised 


By Robert Ctiofea, 

Economics Etfitor 

The management of the 
World Bank has come under 
fire from members of its 
executive board, after the 
development organisation's 
in-house watchdog warned 
that its work on poverty 
reduction was inade qu at e. 

In a recent internal report, 
the Bank's Quasi -indepen- 
dent Operations Evaluation 
Department produced a 
lengthy critique of the con- 
tent and use of “poverty 
assessments". These coun- 
try-specific reports, which 
cost more than $ 220,000 each 
to produce, are supposed to 
ensure that poverty reduc- 
tion is prioritised in the 
Bank's assistance to bor- 
rower countries. 

At a meeting of the Bank's 
board in September, one 
executive director described 
the report as “catastrophic” 
and several said that it cast 
doubt on the seriousness 
with which management »wd 
staff approached the task of 
poverty reduction. The man- 
agement argued in turn that 
the report was overly rigid 
and too negative. 

The report looked at 46 
poverty assessments 
between 1988 and 1994, com- 
paring them with standards 
laid down in an operational 
directive on poverty reduc- 
tion Issued in 1991. The 
report concluded the quality 
of the assessments improved 


after the directive came out. 
but that more thaw 40 per 
cent were still inadequate. 

The watchdog added that 
the content ■ of poverty 
assessments had only “a 

modest Influence" on the 
country assistance strategies 
and that there was only a 
weak link between the 
assessments and the extent 
of poverty-targeted lending. 

“Country assistance strate- 
gies focused over whelming ly 
on broad macroeconomic 
stabilisation and s tructu ral 
reform issues, with fbw ref- 
erences to. the status or 
causes of poverty, or to 
approaches to poverty reduc- 
tion.” the report said. 

The Bank's formal policy 
on poverty reduction identi- 
fies three main objectives: 
broad-based, job intensive 
growth; investment in 
human resources and espe- 
cially the poor; and the pro- 
vision of safety nets for vul- 
nerable groups and the very 
poor. But the report noted 
that some poverty assess- 
ments - notably from the 
Latin America and Carib- 
bean office - focused on only 
one part of this s tr a tegy. 

“Bluntly put, a significant 
mismatch appears to exist 
between the ambition and 
specificity of [the opera- 
tional directive] on the one 
hand, and the per f ormance 
of the Bank and its borrow- 
ing member countries in 
delivering on its provisions, 
an the other.” it concluded. 


Uzbeks’ 

hard 

currency 

problems 

increase 


By Sander Thoone a 
in Almaty 

Uzbekistan's efforts to ease 
a shortage of hard currency 
backfired this week, boost- 
ing black market rates of 
the dollar and driving many 
importers of western goods 
to either increase prices or 
halt business altogether. 

Shelves of many western- 
owned supermarkets have 
run -out of supplies and 
prices of electronics have 
shot up as traders struggle 
to adapt to new restrictions 
on the purchase, use and 
export of hard currency. The 
street exchange rate of the 
sum. the local currency, has 
lost 80 per cent of its value 
in recent weeks as Uzbeks 
rushed to change their s ums 
into dollars illegally. 

Uzbekistan has faced a 
hard currency shortage 
March because of dis- 
appointing export rev en u es . 
Rather than selling gold 
reserves or lowering the 
exchange rate of the sum, 
however, the government 
has left even its largest 
investors dangling with mil- 
lions of dollars in local cur- 
Tcncy. 

“We’re only getting a frac- 
tion converted,” said Mr 
Hikmat Ozmaden, general 
manager of Tasbkochavto, a 
dealership for Turkish-made 
Plat cars. “But they will 
solve their problems. This is 
temporary.” 

Mr Ozmaden said the gov- 
ernment had ba nn e d co nver- 
sion of revenues from pas- 
senger car sales, his main 
business, and started charg- 
ing a 30 per cent commis- 
sion on every dollar con- 
verted from sales of car 
accessories, parts and lubri- 
cants. 

Mr Igor Melnikov, head of 
strategic research at the 
National Bank, Uzbekistan's 
largest commercial bank, 
CT iii that sum revenues on 
some foodstuffs, including 
chewing gum, beer and 
tobacco were at the bottom 
of the waiting list for con- 
version. 

u We have sizeable gold 

reserves -they can cover all 

imports for seve ^, nM ^^. 

Mr Melnikov Mid. “Prob- 
lems arose while re started 
moving towards convertiM- 
Sy. But they were more 
organisational than eco- 
nomic.” . , 

“There's no fundamental 

problem with the ecOTomy, 

one western economist Mid, 

“but they have no great 
faith in market measure® 
working in solving P»Jj 
lems. They felt they 'could 
weather the storm with a tot 
of short-term, rationing. 
That didn’t work.” 


Attack on 
Taliban 
positions 
in Kabul 
restarts 


Forces loyal to the ousted 
Afghan government bombed 
Kabul and launched a blis- 
tering assault on Taliban 
troops north of the capital 
yesterday, breaking . a 
two-day JuD. in Afghanistan's 
latest war, Reuter reports 
from Kabul. 

The assault, on both the 
De Sals pass about 20 miles 
north of Kabul, and another 
pass. Khair Khana, also 
north of Kabul, began early 
yesterday morning. 

It was followed shortly 
after by a bombing appar- 
ently aimed at the capital's 
mate airport In northeastern 
Kabul, which killed three 
chfldreri and wounded seven 
people. 

Witnesses said the ahport, 
used for both military and 
civilian traffic, appeared 
undamaged. 

“The objective Is to 
advance as far forward as 
possible," Mr Mehrabuddin 
Masstan, a spokesman for 
the commander of former 
government forces, Mr 
Ahmad Shah Masood. told 
reporters at the force's head- 
quarters in Jabal os-Siraj 
further north. 

Mr Masstan raid he could 
not confirm -whether any 
ground had been secured by 
the anti-Taliban alliance, 
wiflrie up of Masood’s troops 
and heavy weapons and 
those of the northern Uzbek 
leader. General - Abdul 
Rashid Dostum. 

Bat he said the assault 
was “progressing well". 

The assault on the passes 
is the third in nine days. The 
previous two attacks were 
stalemated around both 
pnawa, viewed by the former 
government as “the gates to 
Kabul”. 

A senior -source in Mr 
Masood’s camp . said retaking 
Kabul from the Taliban mili- 
tia was both politically and 
militarily vital 

Taliban shells also landed 

near the old road into Kabul 
below the Khair Khana pass. 

A commander on the old 
road reported fighting 
around the village of Hus- 
sein Kot, about 20 km (12 
miles) north of KabuL 

The Pakistan-based 
Afghan Islamic Press (AIP) 
agency reported later yester- 
day that a commander loyal 
to the ousted Afghan govern- 
ment on Wednesday 
launched an attack on the 
Taliban in Dara-i-Noor. 
about 28 miles northeast 
of the eastern city of 
Jalalabad. 

Sources close to^ com- 
mander Hazrat Ali told AIP 
his forces had seized the 
area after killing many Tahr 
ban fighters and capturing 
at least 20 . 


Nigerian logging scheme hits a logjam 

Paul Adams on the scandal surrounding plans which threaten a valuable conservation area 


D ud cheques worth 
N600m <$ 7 - 5 m) may 
seem unlikely to 
save a rainforest but the 
fraud scandal rocking the 
Federal Environmental Pro- 
tection Agency (Fepa) could 
help delay a logging scheme 
which threatens Nigeria's 
most valuable conservation 
area. 

Gross River National Park 
in south-east Nigeria is the 
last big rainforest in West 
Africa. A new timber opera- 
tion covering ZOOsqkm on 
the edge of the park by the 
Chinese-owned Wempco 
industrial group has pro- 
voked a storm of protest 
locally and abroad, and 
forced it to submit an envi- 
ronmental impact assess- 
ment (ELA) to the agency, 
only the second company 
ever to do so in Nigeria. 

Conservationists warn 
that Wempco’s logging 
scheme threatens t he entire 
6,000 sq km Cross River for- 
est - 40 per cent of the forest 
remaining in a country 
where 95 per cent has 
already been destroyed- The 
area contains at least 1,500 
plant species, some of them 
endemic to the area, the only 
population of gorillas In 
West Africa and dozens of 
other endangered species. 

But Fepa appeared to have 
dismissed the environmen- 
talists’ arguments and was 



on the verge of approving 
Wempco’s scheme last 
month when the scandal 
broke. 

Dr Evans Aina, its direc- 
tor. and other senior officials 
were detained over embezzle- 
ment of Fepa’s funds, alleg- 
edly to support an insolvent 
bank in Lagos with which 
they had connections. 

The Nigerian Conservation 
Foundation (NCF), backed 
by the Worldwide Fund for 
Nature, had urged the fed- 
eral government “to reject 
existing plans to log 
Nigeria’s last rainforest". 

Wempco’s environmental 
assessment only covers the 
impact of the scheme on 1 
per cent of its timber conces- 
sions, proposes a plantation 
system which will destroy 
biodiversity and fails to 
recognise the role of local 
communities in forest man- 


agement said the NCF. 

“We believe that these are 
errors and omissions which 
make Wempco’s E1A docu- 
ment seriously flawed and 
an unfit and insufficient 
basis to give Wempco the 
go-ahead to log the rain- 
forest" said the NCF. “There 
are constructive ways to log 
the rainforest but a proper 
ELA should be conducted to 
address the shortfalls." 

The arrest of the director 
has temporarily paralysed 
Fepa but the NCF suspects 
that Wempco has begun log- 
ging without approval. 

The company has already 
built access roads to link its 
large new saw mDl at nearby 
Ikom to their remote conces- 
sions in the forest The Chi- 
nese company and the gov- 
ernment of Cross River state 
see the scheme as a lucrative 
new venture employing 


more than 1,000 people in a 
state which needs such 
investment more than it 
needs the national park. 

But critics of Wempco say 
the $4m plywood and veneer 
saw mill at Ikom was built 
to bandit for more timber 
than Wempco’s forest con- 
cessions can legally supply. 
They claim the project will 
encourage illegal logging 
and undermine community 
forestry schemes which the 
EU and other donors are try- 
ing to establish. 

Environmentalists say 
Wempco has a bad record in 
an earlier logging operation 
in the Omo forest, one of the 
few habitats for rare 
monkeys and the few ele- 
phants left in western 
Nigeria. The company was 
accused of illegally logging 
protected trees for export, 
prompting the government 
of Ogun state to suspend 
Wempco’s operations in Omo 
and close down its nearby 
plywood and veneer factory. 

Wempco is reluctant to 
comment but insists that it 
is not out to destroy the for- 
est, that it will protect it by 
employing local people in 
legal logging and that the 
environmentalists’ campaign 
against the company is a 
false alarm that is mislead- 
ing the public. 

For decades, hunting and 
fanning by a growing popu- 


lation have encroached on 
the Cross Rive r fore st In a 
1990 report the WWF warned 
that without prompt action 
the upland Okwangwo area 
would be “of trivial signifi- 
cance for conservation 
within 10*15 years." 

A year later the federal 
government made two thirds 
of the forest a national park. 
Conservationists are gradu- 
ally persuading communities 
in and around the park that 
they are better off preserv- 
ing the forest than hunting 
and farming in it. 

One such project the Xkuri 
Initiative. Is recognised by 
the state government as a 
model for community for- 
estry. The Pandrill us rare 
monkeys breeding pro- 
gramme has won Interna- 
tional awards for its commu- 
nity work at Afi mountain. 
The European Union project 
to develop the economy and 
protect the forest around the 
Okwangwo division is win- 
ning local support. 

The Fepa's lack of sympa- 
thy with the conservation- 
ists follows criticism of the 
park from the Cross River 
state government, which 
recently claimed compensa- 
tion from the federal govern- 
ment for loss of revenue 
through the creation of the 
national park. 

Mr Frank Afufu, the com- 
missioner for agriculture 


and forestry in Calabar, the 
state capital, says the cre- 
ation of the Cross River 
national park in 1991 and an 
EU . aid project, now can- 
celled, raised false bopes. 

Conservationists say the 
claim, coinciding with the 
arrival of Wempco, has left 
the forest in severe jeopardy. 

Mr Afufu believes fears 
are exaggerated. 

“We want the national 
park but people can’t die to 
let a tree live. You have to 
provide an alternative way 
to make a living. The devel- 
opment which our people 
believe in is ocular develop- 
ment - what they can see." 
says Mr Afufti. 

“Nigeria should follow the 
lead of other African coun- 
tries - South Africa, Gabon 
and Ghana - and Join the 
worldwide movement for 
certification for all forestry 
operations by the Interna- 
tional Stewardship Council, " 
said Mr Philip Asiodu. a for- 
mer oil minister, who heads 
the NCF. 

“The companies now 
descending on us here have 
all been affected by the 
stricter controls now 
imposed in countries like 
Thailand, Malaysia and 
Indonesia. The risk Is that 
there will be five years of 
destruction and then they 
will move on like termites." 


Abacha medal award prompts UN dispute 


By Fr ance s Williams fci Geneva 

A diplomatic row is brewing in 
Geneva over the recent presenta- 
tion of a gold medal to General 
Sanl Abacha. the Nigerian presi- 
dent, by the head of the World 
Intellectual Property Organisation 
(Wipo), a United Nations agency. 

The award was given in spite of 
condemnation of Nigeria’s human 
rights record by two other UN bod- 
ies, the Human Rights Commission 
and the International Labour 
Organisation, and the country's 
suspension from, membership of 
the- Commonwealth for human 
rights violations. 

The presentation, made without 
the knowledge of other Wipo mem- 
ber governments and most Wipo 
staff, apparently took place in 



Sani Abacha; medal normally 
given to inventors 

Abuja, the Nigerian capital, during 
a visit in October by Mr Axpad 
Bogsch Wipo director general. The 


US is demanding an explanation of 
the award. 

In a letter to Mr Bogsch express- 
ing Washington’s “deep concern", 
Mr Daniel Spiegel, US ambassador 
to the UN in Geneva, notes the 
Wipo gold medal is normally given 
for significant achievements by 
inventors. 

“We are not aware that Gen Aba- 
cha has made si gnifican t contribu- 
tions as an inventor, nor has 
Nigeria proven to be particularly 
deserving of special recognition for 
its progress in advancing the pro- 
tection of industrial property 
rights,” the letter says. 

Nigeria is said by international 
business groups to be a thriving 
market for counterfeit goods, 
including films, television pro- 
grammes and sound recordings. 


Mr Bogsch. a Hungarian-born US 
citizen now in his late 70s who has 
headed Wipo since 1973, was not 
available for comment yesterday. 
This latest incident follows another 
dispute in September over an ambi- 
tious plan for a new Wipo building, 
now being re-examined after US 
intervention. 

Western diplomats yesterday 
confessed bafflement over Mr 
Bogsch’s motives for giving the 
award. One speculated that Mr 
Bogsch. who retires next year, was 
trying to boost the chances of Mr 
Carlos Fernandez Ballesteros, 
Wipo’s Uruguayan assistant direc- 
tor general, to succeed him. Mr 
Ballesteros accompanied Mr 
Bogsch on the trip to Abuja. 

Another suggested Mr Bogsch 
may have felt obliged to accept a 


Nigerian government recommenda- 
tion that Gen Abacha receive a 
medal. Mr Bogsch “showers two to 
three medals wherever he goes.” 
the diplomat said, noting that the 
president of Uzbekistan had 
received one last year. However, In 
his letter Mr Spiegel argues that, 
as a specialised UN agency, Wipo 
has an obligation to respect UN 
mandates and recognise the politi- 
cal consequences of its actions. 

He said yesterday that it was 
“outrageous and bizarre" for an 
award for inventive genius and cre- 
ative talent to be given to the head 
of a government that had forced its 
only Nobel Laureate, writer Wole 
Soyinka, into exile and executed 
another writer. Ken Saro-Wiwa. 
under “very questionable” circum- 
stances a year ago. 


Settlements 
policy under 
fire in Israel 


By Judy Dempsey 
bi Jerusalem 

The Israeli government is 
actively pursuing a policy of 
expanding Jewish settle- 
ments as well as encourag- 
ing people to live in the West 
Bank by offering finanriaT 
incentives. Peace Now, 
Israel’s most prominent 
peace movement, said yes- 
terday. 

The settlement policy will 
be allocated Shk600m 
C$l83m) from the 1997 bud- 
get, double the amount in 
this year’s budget 
Mr Mossi Raz, a Peace 
Now activist who has scru- 
tinised the 1997 budget said 
the government would 
finance its settlement poli- 
cies by trimming the bud- 
gets of ministries not 
involved in the settlements. 

“While ordinary Israelis 
have to face a Shk4.9bn cut 
in social welfare pro- 
grammes, the settlements 
will be spared any of these 
measures." added Mr Raz. 
“We are sure of one t hing . 
There is now a conscious 
policy of expanding the set- 
tlements and encouraging 
people to settle in them." 
Settlers will continue to be 
granted a tax reduction of 
seven percentage points 
from their salary. 

Peace Now earlier in the 
week sent a letter to Mr Ben- 
jamin Netanyahu, the prime ■ 
minister, to coincide with 
the first reading of the bud- 
get, which aims to cut the 
budget deficit to 2J5 per cent 
of gross domestic product 
next year compared with SB 
per cent this year. 

It protested about the 100 
per cent rise in spending for 
the settlements as well as 
the fact that 90 per cent of 
the budget allocation was for 
areas beyond the Green 
Line, Israel’s pre-1967 bor- 
ders. 

A dose reading of the 1997 
budget proposals show that 
the housing and construc- 
tion ministry will be allo- 
cated Shkl72m tO flniab 
housing prefects started in 
the West Bank between 1990 
and, 1992 but unfinished- by 
the former Labour govern- 
ment, . which itself had 


embarked an one of the big- 
gest settlement expansions 
during its tenure in office. 

The agriculture ministry 
has been given a budget of 
Shkl4£xn for new settle- 
ments and the ministry of 
industry and commerce baa 
additional spending of 
Shk09m far investing in set- 
tlements on the West Bank. 

The state-run Israel Tr e nd s 
Authority, the country’s 
largest landowner, will be 
given ShklBSm. a 15 per cent 
increase on this year’s bud- 
get - which was not spent - 
specifically far expropriating 
land at Har Homa. 

Har Homa is in east Jeru- 
salem where Israel’s jurisdic- 
tion is not recognised under 
international law. It has 
been earmarked for develop- 
ing a Jewish-inhabited dis- 
trict. 

Meanwhile, the - govern- 
ment would not confirm 
whether a plan drawn up by 


Pressure is 
coming from 
ultra-Orthodox 
communities 


Mr Avigdar Lieberman, the 
director general of the 
prime minister's office, 
would grant new settle- 
ments in Gaza and the 
West Bank “high national 

prioilty”. 

The government is coming 
under pressure from the 
ultra-Orthodox communities 
to make more new 
housing available for the 
settlers. 

• Almost all buildings 
demolished by Israeli regula- 
tors since 1993 for unlicensed 
construction belonged to 
Arabs, the Haaretz newspa- 
per said yesterday, Renter 
reports from Jerusalem. 

The newspaper, which 
examined Interior Ministry 
reports, said 90 per cent of 
all flVg ai buildings razed in 
Israel and East Jerusalem in 
the last three years were 
constructed by Arabs. 

It soldi however, that 
Arabs were responsible for 
only 65 percent of all con- 
struction without a permit 


LaSalle Partners 

is pleased 
to announce 
the acquisition of 

CIN Property Management Limited 

responsible for a *£1-5 billion portfolio 

and the subsequent formation of the UK property 
investment management firm 


CIN LASALLE 

Investment Management 

Regulated by IMRO 



The combined group in the UK will have the range of resources, 
infrastructure and market presence required 
to deliver superior performance to clients. 


LASALLE PARTNERS 






8 


FINANCIAL TIMES FRIDAY NOVEMBER 1 1996 


NEWS: UK 


Committee will consider whether outside body should oversee insurance market 


Lloyd’s may broaden regulation 


By George Graham 
in London 

The Lloyd's insurance 
market is reviewing whether 
its regulatory functions 
should be passed to an out- 
side organisation. 

Lloyd's yesterday 
announced the formation of 
a review group under the 
chairmanship of Sir Alan 
Hard castle, who chairs its 
existing regulatory beard, to 
examine arrangements for 
overseeing the market. 

The group's terms of refer- 
ence say it will consider 
“whether organisations 


other than Lloyd's should 
undertake or supervise any 
regulatory activities.” 

Sir Alan said the review 
would involve the Securities 
and Investments Board, the 
regulator of most of the rest 
of the City of London's 

financial institutions and 
markets under the 1986 
Financial Services Act 
Lloyd's is regulated under 
its own 1932 act of parlia- 
ment and largely exempt 
from the FSA. though the 
government's Department of 
Trade and Industry has a 
role in protecting policy- 
holders' Interests. Bringing 


it under the SIB would 
require fresh legislation. 

Although a committee of 
the House of Commons said 
last year that the Insurance 
market's regulations needed 
overhauling, the government 
has ruled out any action 

before the summer of 1997. 

The 13-member review 
group will also consider the 
structure and staffing of 
Lloyd's regulatory division 
and the composition of its 
regulatory board. 

Efforts to review Lloyd’s 
regulation and internal 
structures have for the last 
five years largely been side- 


lined by the market's trou- 
bles. 

In September, however, 
the DTI approved the cre- 
ation of Equitas, the reinsur- 
ance company Into which 
Lloyd's is transferring about 
£12bn of mainly US liabili- 
ties outstanding on policies 
sold before 1993. 

Approval came after more 
than 90 per cent of the 34.000 
Names - the individuals 
whose assets have tradition- 
ally supported the market - 
agreed to accept a £3.2bn set- 
tlement offer to end legal 
action against Lloyd's. 

Much remains unclear 


about Lloyd's future shape. 
The unlimited personal lia- 
bility of the traditional 
Names Is being replaced by 
new corporate investors - 
professional fund managers 
and insurance specialists 
which have pumped £L5bn 

into limited liability corpo- 
rate members at Lloyd's in 
the past three years. 

If that trend continues, 
Lloyd's officials say, it could 
change the sort of regulation 

that would be appropriate. 

Transferring Lloyd’s regu- 
lation to another body, such 
as the SIB, would have much 
s u pp or t wi thin the market. 


Bus industry 
alarmed by EU 
design ideas 

Operators fear new standards 
could force their costs to rise 


The British bus industry 
fears that proposed Euro- 
pean Union rules on con- 
struction may make bus 
travel less attractive. The 
European Commission's 
industry directorate (DG3) 
proposes to publish a direc- 
tive laying down standards 
for the construction of buses 
and coaches within the next 
few weeks after four years of 
wrangling and no fewer than 
eight drafts. 

The Industry fears that the 
draft directive could push up 
the cost of buying vehicles, 
reducing the already slim 
margins many operators 
make. UK requirements to 
improve disabled access are 
currently forcing bus opera- 
tors to invest in more expen- 
sive low-floor and “kneeling" 
buses. 

British bus operators com- 
plain that the directive is 
based on the mainland Euro- 
pean approach to bus design, 
which allows for relatively 
few seats but plenty of 
standing room. Buses in 
Britain and Ireland have tra- 
ditionally offered more seats. 

The British bus industry 


still has deep misgivings in 
spite of assurances from Mr 
Neil Kinnock, European 
transport commissioner, to 
the Confederation of Passen- 
ger Transport, representing 
bus, coach and tram opera- 
tors. “We hope that the 
directive will concern itself 
with matters of safety rather 
than comfort, which are best 
left to the individual mem- 
ber states or to the opera- 
tors," said Mr Dennis 
Flower, operations director 
of the confederation. 

The main proposals on 
which Brussels has been 
working include allowing a 
greater number of standing 
passengers while reducing 
the number of seats. Up to 
eight standing passengers 
would be allowed per square 
metre compared with the 
five at present permitted in 
the UK. 

The directive is also expec- 
ted to call for an increase in 
the number of doors and, on 
certain classes of double- 
deckers, the installa tion of a 
second set of steps to the top 
deck. 

“These proposals have 



European bus and coach comparisons 


1998 (*1991 **1982} 


Pop’n 

m 


Busy coaches 


vehicles 

000 


vehicle 
bn ton 


P as seng e r km 
trave Be d by 
bus/ coach. 
total per 


Bri tain 's two main political 
parties yesterday called for 
London's distinctive Route- 
master bases to be saved 
after it was suggested they 
may be scrapped by 2000, 
Liam Halhgan writes. 

more to do with technical 
standards than with com- 
mon sense,” said Mr 
Anthony Pursey. commercial 
director of Walter Alexan- 
der, a UK bus and coach 
body builder. “We found no 
evidence of any passengers 
being seriously injured or 
killed over the past decade 
because there was no second 
stair case on double deck- 
ers.” 

The confederation believes 
that, far from enhancing pas- 
senger safety, any moves to 
reduce seating in buses and 
to increase the number of 
doors will increase the risks 

to travellers. 

“We are convinced that a 
seated passenger is always 
safer than a standing one,” 
said Mr Flower. “Further- 
more. the UK bus industry 


- - - ‘ w p* -" 

Northern Ireland 1.6 2 - - - 

Belgium - mi 15 0 A" 4.7 465 

Finland - 5.1- . S .. 0£ B.0 1569 

j$» s^jbsE . 

Germany - 80-6 71 4.7 71.1 882 

Irish Republic 3.6=’ 6 D-3~ - 

Luxembourg OA 1 - _ - 

Portugal 9.9 1 11 0.7 " 11Ji 1102 

Sweden - 8.8 ' 14 (LB IOlP -1239 

Britain has tha thU high oa t omrat kanri of. bus and coach hmI to IM4 

taut only imjcij Mghaat Ma of trim and coach mm pw mm tri ptputakn 


has progressively reduced 
the number of vehicles with 
centre and rear doors 
because of the risk to pas- 
sengers boarding and alight- 
ing out of the driver’s direct 
line of sight.” 

In addition, bus operators 
do not like doors away from 
the driver because of the 
increased nhnnrv» of passen- 
gers avoiding paying their 
fare and the need to position 
bus doors alongside shelters 
and platforms at bus stops. 

Bus operators fear that the 
shift away from dou- 
ble-decker buses to smaller, 
more economical and flexi- 
ble mini and midi-buses 
which followed the deregu- 
lation of the UK bus indus- 
try in the mid-1980s could 
also be jeopardised by EU 

le gislation _ 


One element of the direc- 
tive is expected to be a regu- 
lation on the ■minimum 
width of seats. This would 
have the effect of reducing 
the number of seats abreast 
which could be installed 
from four to three and make 
their operation uneconomi- 
cal This would be in line 
with mini buses which 
account for 12 per cent of the 
UK bus fleet, 

EU member countries will 
be allowed to seek exemp- 
tion from the terms of the 
directive until a review 
planned for 2005 but British 
bus operators described this 
as a “fudge” which at best 
would postpone the imposi- 
tion of unattractive regula- 
tion. 

Charles Batchelor 


Phones innovation is linked to Philips 


By Alan Cane In London 

A nine-month-old UK 
company has developed a 
system which offers small 
and home-based businesses 
the advantages of large, com- 
puter-based telephone 
exchanges at a fraction of 
the cost. 

The system, called “Imagi- 
nation”. has been designed 
and developed and is manu- 
factured by Telecom Sci- 
ences Corporation for Phil- 
ips, the Dutch electronics 


group- TSC bought Philips' 
telecoms manufacturing 
business in Airdrie. Scot- 
land, in February this year 
for £28. 1m t$45.8m). 

“Imagination” enables 
companies with only a hand- 
ful of telephone lines to take 
advantage of “computer- 
telephone integration" an 
advanced system used by 
large companies to recall 
customer details speedily, 
and ISDN (Integrated Sub- 
scriber Digital Network), 
high speed telecommunica- 


tion lines which form the 
foundation of the informa- 
tion superhighway. 

CTI systems can cost tens 
of thousands of pounds 
which has limited their use 
to large companies. The new 
system, however, has an 
entry level price of £699 for a 
home business rising to 
about £11,000 for a medium- 
sized company with 250 tele- 
phone lines. 

Mr David Boyce, TSC chief 
executive, said he expected 
the company to have sales of 


£80m in Europe by the end 
of next year with almost half 
the total in the UK. 

The UK lags behind other 
European countries in the 
adoption of ISDN lines, 
which are capable of trans- 
mitting voice, data and video 
images simultaneously. This 
is chiefly because of cost In 
the Netherlands, for exam- 
ple, it is now cheaper to 
install an ISDN line th an a 
conventional telephone line, 
while Germany has stimu- 
lated demand by paying 


DM700 ($463.50) towards the 
cost of equipment to be used 
on a newly installed ISDN 
line. British Telecommunica- 
tions is keen to stimulate 
demand for ISDN lines and 
has recently announced new 
tariffs. 

Mr Boyce says the use of 
“Imagination” equipment 
and an ISDN line would 
eliminate the need for sepa- 
rate pieces of equipment 
such as fax machines and 
telephone answering 
machines. 


Reform of 
N Ireland 
terror law 
proposed 

By John Kampfher, 

Chief Political 
Correspondent 


The British government was 
yesterday presented with a 
radical prescription for 
reforming anti-terrorist leg- 
islation to Northern Ireland. 

The recommendations 

were contained in the find- 
ings of a year-long inquiry 
by Lord Lloyd of Berwick, 
who was asked by ministers 
to look at changes in the: 
event of lasting peace in 
Northern Ireland. 

Some of the suggestions 
relating to human rights In 
Northern Ireland are likely 
to be dismissed by pro- 
British politicians in the 
region and many Conserva- 
tive members of the House 
of Commons. 

The report was commis- 
sioned two months before 
the Irish Republican Army 
broke its ceasefire in Febru- 
ary. With the inquiry remit 
seemingly out of date, many 
of its more controversial pro- 
posals are likely to be 
shelved. 

The opposition Labour 
party, however, called the 
report a “significant contri- 
bution” which showed how a 
second IRA ceasefire “could 
transform the framework of 
law and order throughout 
the UK”. 

The legislation Is intended 
to replace the pasting Pre- 
vention of Terrorism Act, 
which applies to the British 
mainland, and the Emer- 
gency Provisions Act for 
Northern Ireland which are 
both subject to annual 
review. 

The report makes clear 
that, even if peace is agreed 
in Northern Ireland, perma- 
nent anti-terrorist legislation 
will be required. 

One of the aims is to pre- 
empt future challenges 
against Britain by European 
courts. Among the sugges- 
tions are: 

• Ending exclusion orders, 
which have been used in the 
past to prevent individuals 
from entering Britain from 
Northern Ireland. 

• Ending so-called 
“Diplock" courts in North- 
ern Ireland, set up to allow 
judges to cast verdicts 
Instead of juries because of 
intimidation. 

• Replacing the seven-day 
pre-trial custody for terrorist 
suspects. In future, an initial 
48-hour could he extended 
only by two days through a 
decision of judges rather 
than ministers. 

• Introducing a statutory 
provision enabling judges to 
ensure that a minimum term 
stipulated for a life sentence 
reflects the severity of a ter- 
rorist crime. 

• Encouraging informers 
with a discount of one-third 
to two-thirds off a sentence 
if they testify for the prose- 
cution. Currently it is at the 
discretion of judges. 


(WHOOP5! SOMEONE ELSE HAS 
BEEN BLOWN AWAY BY THE 
AUDITORIUM DEMO ROOM] 



2 min* from Liverpool Street S tati on a 

(off Behopsgjte) Auditorium 

London El — — < — -—*•** 

Tel: 0T7T 247 5000 mttty uvtim- 

kef - down - (Mini audio - bang A olufsen • mlidon - qma • reg» • etc 


CONTRACTS & TENDERS 


INVITATIONS FOR 
EXPRESSIONS OF INTEREST 

WIT HAM PROSPECT 

The Coal Authority has received an Application for a 
Conditional Operating Licence (Underground) in relation 
to an area of 19.956 ha. in the counties of Nottinghamshire 
and Lincolnshire and bounded by the towns of Newark, 
East Retford. Tuxford and the City of Lincoln. The area is 
centered on National Grid Co-Ordinates E 482.000 N 
365.000 and relates to the Top Hard Seam. 

Persons wishing to make alternative expressions of 
interest in relation to coal mining operations in this area 
should submit particulars to the Director of Licensing by 
31st December 1996. 

Expressions of interest should be delivered to:- 

The Licensing Department 
The Coal Authority 
Bret by Business Park 
Ashby Road 
Burton on Trent 
Staffs. DEI 5 0QD 

The subsequent timescale for submission of complete 
applications will be discussed with interested parties. 


Pension debt stirs Emu debate 


By James Blitz, 

PoEtical Correspondent 

The cabinet was yesterday 
embroiled in a new row over 
sterling's membership of a 
single currency following 
publication of a report into 
Europe's public pension 
schemes. 

In spite of a determined 
display of unit}' over Europe 
at last month's annual con- 
ference of the governing 
Conservative party. Mr Ken- 
neth Clarke, the chancellor 
of the exchequer, and Mr 
Peter Lilley, the chief social 
security' minister, appeared 
divided over a report 
expressing alarm over 
“unfunded” pensions 
schemes in European Union 
states. 

Mr Lilley was said to be 
warmly supportive of an 
investigation by the House 
of Commons social security 
committee, which claimed it 
would be “crazy" to exclude 
Europe's growing unfunded 
pensions liabilities from the 
monetary union criteria. 

But officials at the Trea- 


Lord Healey, the former 
Labour chancellor of the 
exchequer, underlined the 
party’s increasingly 
sceptical stance over 
European monetary union 
on Wednesday by predicting 
that a single currency would 
cause street riots, David 
Wighton writes. 

He told the House of Lords 
that it would be “a disaster 
economically and politic- 
ally” for Europe to go ahead 
and that if the UK could not 
persuade other countries to 
delay it should stay out. 


Lord Healey, then Mr Denis 
Healey, was a Labour MP 
from 1945 to 1992 and a 
minister in the 1970s. 

“The soda! strains created 
by the fight between the 
central bank and the 
national governments to try 
to return to the type of 
convergence which was 
originally intended will 
produce riots on the streets, 
as they already have in 
France, and certainly 
demonstrations, as they are 
doing now in Germany,” he 
said. 


sury, where Mr Clarke is the 
senior minister, said there 
was no substance to the 
report, arguing that EU 
states “have started to take 
at least some action” to deal 
with long-term liabilities 
from their unfunded 
schemes. 

The committee's report, 
entitled Unfunded Pensions 
Liabilities m the European 
Union, argued that France 
and Germany would face a 
crippling fiscal burden in the 


next century because of 
their reliance on pay-as-you 
go schemes. By contrast it 
claims the UK is in a far 
stronger position because it 
has more pension assets 
invested in private sector 
schemes than the rest of 
Europe put together. 

The committee argues that 
the UK would be “at risk" 
from the levels of pension 
debt in Europe if it joined a 
single currency. 

As an example of the 


kinds of liabilities the UK 
might be exposed to, the 
committee said the UK's 
total national debt — includ- 
ing unfunded pension liabili- 
ties — was currently equiva- 
lent to £9.000 per person. 
This would increase to an 
average of £30,000 of debt if 
total EU liabilities were 
shared among all member 
states. However, the Trea- 
sury argued that the UK was 
protected by several aspects 
of the Maastricht treaty. 

It emerged yesterday that 
a leading economic adviser 
to the European Commission 
was set to raise concerns 
about the economic pres- 
sures from public sector pen- 
sion schemes across Europe. 

In a paper that will be pub- 
lished shortly, Mr Daniele 
Franco, economic adviser in 
the Commission's director- 
ate general for economic and 
financial affairs (DGU), 
argues that the scale of 
unfunded liabilities will 
mean that “in the first 
decade of the next century 
the outlook for the pension 
system gets worse”. 


UK NEWS DIGEST 


Export credits 
agency recovers 

The Export Credits Guarantee Department has completed 
its recovery from more than a decade of serious financial 
difficulties caused by the Third World debt crisis, the 
head of the government-owned trade finance agency said 
yesterday. 

Mr Brian Willott, chief executive, said a buoyant operat- 
ing performance and an improvement in the department s 
cash flow in the year to March 31 had enabled it to make 
a £246 tn ($400. 98m) cash payment to the Treasury. 

The last time the ECGD contributed to the exchequer 

was in 1983. It then operated In deficit before achieving 

break-even in 1993-1994. Last year's payment is believed to 
be the largest ever, although the ECGD said changes in 
Its operations made direct comparisons with previous 
years difficult. 

The ECGD said its trading surplus on new insurance 
business written wnw 1991 rose to £103 in the last 
financial year from £60m. Premium income increased to 
£156J>m from £U2J5m. while claims paid fell to £294. 7m 
from £42 1m. 

Guarantees issued for new business rose 35 per cent to 
£4.08bn, twice the average annual level for the previous 
decade. The figure was boosted by cover for exports of 
Airbus commercial aircraft and large power station pro- 
jects in fihiTia and the Philippines. China was by for the 
biggest market for new business. Guy de Janqui&res 

■ CORPORATE GOVERNANCE 

Two-tier German boards rejected 

The Confederation of British Industry, the country's big- 
gest employers' lobby, yesterday rejected suggestions 
from the opposition Labour party that economic “stake- 
holders" such as employees, customers and suppliers 
should be represented in company boardrooms. 

In a report prepared for the corporate governance com- 
mittee chaired by Sir Ronald Hampel, the CBI acknowl- 
edged that the UK’s traditional unitary board system was 
under attack following public arguments over directors’ 
pay and the role of non-executive directors in supervising 
executive directors. 

However, the CBI said that the answer to these con- 
cerns did not lie in opening boardrooms to representatives 
of stakeholders or accommodating stakeholders by creat- 
ing German-style two-tier boards. Stefan Wagstyl 

m PENSIONS 


Mis-seliing leak investigated 

The Personal Investment Authority, the City of London 
watchdog, has launched an inquiry into a leak of figures 
showing the slow pace of efforts to compensate people 
who were mis -sold personal pensions. It plans to appoint 
“an independent person of stature” to conduct the probe. 

The figures, printed in the Independent newspaper in 
London this week, showed that 26 of the country's loading 
pension providers had assessed only 9.100 of more than 
360,000 priority cases. 

The review into pensions mis -selling was launched by 
the Securities and Investments Board, the chief city 
watchdog, in 1994 when up to 1m potential cases were 
identified. Christopher Broum-Humes 

■ INTERNET 


Servicing companies 9 growth falls 

The rapid expansion in the number of companies set up to 
take advantage of the Internet in the UK has fallen off in 
the past six months, according to a continuing survey of 
the global network. There are now 630 British companies 

Wire services - 

When companies started providing Internet access & services 
In theUK airetand . . 

■ Aec—a— wfloa j -; | 


- Oct 

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I M . 


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. O . . -. ,40.. . 13® . .180 BOO 

Ai^3MJ3anitaoB Nurob«rot coaiparda* 

listed by ArcGlade Services in their “inetuk" list, of 
which 61 per cent are involved in designing Net services 
for other companies. The rest base their business on link- 
ing individuals and companies to the Net, although many 
now cover both the “access” and “services" sides of the 
sector. James Mackintosh 

■ INWARD INVESTMENT 


Toyo Seals leases factory 

Toyo Seal Industries of Japan is making its first overseas 
manufacturing investment with a £2. 4m <$3.91m) project 
in north Wales. The company, which makes rubber seals 
for automotive bearings, considered other sites in the UK 
and mai n la n d Europe before deciding to lease a factory at 
Wrexham in north Wales from the Welsh Development 
Agency. The project is grant aided by the British govern- 
ment’s Welsh Office. 

In a separate inward investment, Conti co International 
of the US is setting up a company in Cornwall, south-west 
Engl a n d, to assemble plastic spray heads, used for domes- 
tic cl eanin g and insecticides. The subsidiary, Continental 
Sprayers, is expected to create at least 60 jobs in a £5.ixn 
investment at Redruth. The Department of Trade & Indus- 
try is providing £840,000 of grant aid. 

Rolcaid Adburgham, Cardiff 

COMPANY SALE 


Rolls-Royce in negotiations 

Rolls-Royce will today issue a statutory protective redun- 
dancy notice relating to all the 1,700 employees of its Par- 
sons Power Generation Systems offshoot, which was 
offered for sale in July. Rolls-Royce, which is continuing 
its efforts to sell Parsons, says it is optimistic of a sale. A 
couple of potential purchasers, whose identity hsq not 
been disclosed, have signed confidentiality clauses and 
are carrying out due diligence. Chris Tighe 


US team fails to prove electricity allegations 


By Simon Hot barton tn London 

Britain's electricity industry will 
take comfort from the most com- 
prehensive survey of research into 
the effects on human health of 
electromagnetic fields (EMFs) 
which has concluded there is no 
clear, convincing evidence that 
exposure to them harms health. 

More than 500 studies published 
over the past 17 years were exam- 
ined by a committee of the US 
National Research Council, a body 
funded by Congress. 


At the release of the committee's 
report In Washington yesterday, 
Professor Charles Stevens, chair- 
man of the committee, said: 

“Research has not shown any con- 
vincing way that EMFs common in 
homes can cause health problems, 
and extensive laboratory tests have 
not shown that EMFs can damage 
the cell in a way that is harmful to 
human health.” 

All electrical appliances emit 
EMFs, as do above and below- 
ground power lines. Since a 1979 
study implicated EMFs in an 


above-average incidence of child- 
hood leukaemia, electricity compa- 
nies have been sensitive to the 
financial consequences of public 
liability suits. 

Companies have sought to pro- 
tect themselves from civil suits by 
taking out special Insurance 
schemes to help them fight court 
cases. Eight regional electricity 
companies in Britain are investiga- 
ting the establishment of an off- 
shore mutual Insurance fund. 

An epidemiological study of 
childhood cancer is being under- 


taken by the UK co-ordinating 
committee on cancer research. 
This may go some of the way to 
resolving the questions that con- 
tinue to linger after nearly 20 years 
of research. 

Although Professor Stevens' 
committee found no experiments 
on cells, and animals, or studies of 
humans showing EMFs as being 
carcinogenic. It concluded that 
there was an as yet unexplained 
“association” between EMFs and a 
higher than normal incidence of 
childhood leukaemia. 


It said that the association 
between residential proximity to 
high voltage transmission lines 
and increased rates of childhood 
leukaemia remained unexplained. 
High voltage transmission lines 
were associated with a 
“statistically significant" lVi fold 
excess of childhood leukaemia 
cases. 

“However, the inconsistency of 
results and the lack of a positive 
association when spot 
measurements are used remain an 
e nigm a." the resport says. 


6 





9 



FINANCIAL TIMES 


FRIDAY NOVEMBER 1 1996 






r " r 'li|!lW 




■ Z 


r iNANClAl times survey 


JORDAN 


Peace crisis 

crushes hopes 


Unless the Israeli leader rhangao 
course, the kingdom’s dream of being 
the economic hub of the Middle feist 
may prove impossible to f ulfil 
David Gardner explains why 


Just one year ago. King 
Hussein of Jordan opened 
the second Middle East eco- 
nomic summit in Amman, 
intended to demonstrate that 
the long Arab-Israeli conflict 
had given way to peace, 
cross-border business 
regional Integration - and to 
entice investors into 
choosing Jordan as their 
Middle Eastern base. 

Only days later, prime 
minister Yitzhak Rabin of 
Israel was by a 

Jewish extremist, triggering 
a chain of events that led to 
May’s election of Mr Benja- 
min Netanyahu at the head 
of a hardline Israeli coali- 
tion. The regional peace pro- 
cess has «inra ground to a 


halt, and the much-touted 
Israel-Jordan-Palestlne “tri- 
angle’* of development, sold 
to Jordanians as the King- 
dom's ticket to a middle-in- 
come economy, is nowhere 
In sight 

King Hussein, the Arab 
leader who went furthest in 
building bridges towards 
Israel, has since May looked 
perilously out on a limb, as 
exposed as at any tima in his 
bumpy 44-year reign. 

In August a more than 
doubling of bread prices as 
part of an International Mon- 
etary Fund-sponsored pro- 
gramme to cut the budget 
deficit and deepen structural 
reform of the economy 
sparked a revolt, which 



^ % iT./M* 1 ! - - Jordan's prime mtntetor, Kabartti: ha* had to face domestic unrest 


quickly spread from the old 
Crusader stronghold of 
Karak through southern Jor- 
dan to the poor suburbs of 

the capital. Amman. 

Just as in similarly fierce 
rioting after an IMF-backed 
fuel price rise in 1388, it was 
the Bedouin tribes and eth- 
nic “East Bank** Jordanians 
- not the majority Palestin- 
ian community In the king- 
dom, traditionally seen as 
the greatest security worry - 
who rose in Ire. The Bedouin 
army and Intelligence ser- 
vices, alongside an adminis- 
tration sprinkled with Pales- 
tinian technocrats but 
dominated by tribal gran- 
dees, are the pillars of the 
monarchy. 

It was also the East Bank- 
ers who took most exception 
to King Hussein’s emotional 
speech at Mr Babin’s funeral 
last year. Hostility to Jor- 
dan's 1994 peace treaty with 
Israel is widespread, and has 
deepened as the “peace divi- 
dends” rashly promised by 
the government have failed 
to appear. 

Unlike Egypt, which has 
had more than $40bn in 
mainly US aid since gi grving 
its peace treaty with Israel 
in 1379, Jordan has received 
a writeoff of barely gibn of 
its foreign debt, which, at 
4&2bn, still nearly equals its 
grass domestic product At 
the Amman summit a year 
ago. Jordan had high hopes 
of attracting investment of 
up to $&5bn. much of it to 
develop assets shared with 
its peace partners, such as 
the water, energy, •mrnpraic, 
land, ports and tourism 
potential of the Jordan Rift 
Valley and Gulf of Aqaba. 
Hard though Jordan has 
worked, virtually none of 
this ham materialised. 

After the near collapse of 
its economy and finances at 
the end of the 1980s, Jordan 
successfully stabilised - its 
macroeconomy, and until 
last year managed non-infla- 
tionary growth averaging 





1905 

1096* 

Total GDP. namtnN (JD Won) 

4JS2 

5.12 

Real GDP growth (annual % change) 

6.4 

4.1 

1 GDP per head (S) 

1.561 

1,053 

Consumer prices [annual sv. % change) 

2.3 

6.4 

Industrie] output (annual % change) 

5,1 

-1 a 

Agricultural output (annual % change) 

44) 

4.9 

Sendees output (anrual % change) 

5.1 

73 

Money supply. M2 (anrual % change] 

7.6 

7 .0 

Foreign debt (Sm) 

7.129 

7,000 

Debt sendee (9fi of exports) 

14.4 

14.7 

Current account balance &enj 

-221 

-279 

Merchandise exports (Sm) 

1,776 

1,950 

MwchantMae unperta (Sm) 

-&297 

-3452B 

Merchandise trade balance ($m) 

-1,521 

-1,578 



* toreent 



■ Aims 91,800 mj km 

■ Poputatkwc^-Sm 

■ Currency: Jordanian Dinar JJD) 
Bate: Oct IS. 1986 SlmSOOTlT 

■ Main town* and poptSatfon: 


Matraq 102,000 
flamths 784X0 
A0W 73.000 
Madaba 704)00 


Amman 1,231,000 
Zarqa . 9854X0 
IrbiCS ' 373.000 

So* . 1874X0 


Arabic; EngBrti la widely 


spokan. 


Sources: EJU; Datestreafn 

around 6 per cent of GDP. It 
moved quickly on to struc- 
tural reform, putting in 
place investor-friendly laws 
and reforming capital mar- 
kets. starting privatisation, 
and signalling its intention 
to become internationally 
competitive by negotiating a 
partnership agreement with 
the European Union and 
membership of the World 
Trade Organisation. 

But reform, coincident 
with an unpopular peace, 
has also brought hardship to 
a fast-growing population, 
widening the gap between 
rich and poor, and badly hit- 
ting the middle classes, the 
social bedrock of Jordanian 
stability. According to Mr 
Mufleh Akel, a senior execu- 
tive at the leading Arab 
R ank, while official figures 
show an increase in per cap- 
ita income over the past 
three years of 6 per cent, pri- 
vate consumption has fallen 
13 per cent in the same 
period, and a quarter of the 
population remains below 


National legisistiira: bicameral Motional 
Assembly; Senate of 40 members appointed by 
the king. Under the constitution, sena tors ere 
selected from prominent political and public 
figures. Directly elected Chamber of Deputise of 
80 members. 

Electoral system: direct universal suffrage 
Next election due: November 1997 

National government: Council of Ministers 
headed by the prime minister, appointed by the 
king; ministers appointed by the king on the 
advice of the prime minister. The Council of 
Ministers is responsible to the Chamber of 
Deputies. 


. Head of state: 

1 Mng Hussein Mm TatM 

Prime mi nister, foreign 
and defence minister 
Abdet-Karfm al-Kebarttl 
Speaker of the Senate; 
Ahmad Lead 
Speaker of the National 
Assembly: 

Seed Hayel Soraur 

Main poBtical parties: Jordanian National 
Alliance; Popular Unity Party; Future Party, 
Unionist Arab Democratic Party; Islamic Action 
Front; and pan- Arab nationalist, Baatfitet and 
Communist parties. 



the poverty hue. 

Yet while it was buoyed by 
the peace process, Jordan 
could plausibly aim at 
becoming a prosperous 
regional base for investment 
and production. “We started 
seeing ourselves as a cata- 
lyst that could activate 
t.iirng K around us.” says Mr 
Taleb Rifa’i, head of the 
Investment Promotion Cor- 
poration. the new “one-stop- 
shop” for foreign investors, 
“a bridge between the Arabs 
and Israel, and a processing 
centre far money, goods and 
services’*. 

The pressure for Jordan to 
reorient its foreign and trade 
relations was and remains 
strong. The progressive clos- 
ing off of Iraq, traditionally 
Jordan’s largest market, as a 
result of UN sanctions fol- 
lowing President Saddam 
Hussein's 1990 invasion of 
Kuwait, and the very slow 
recovery of exports to the 
Gulf, where Jordan was until 
recently unwelcome because 
it stood aside from foe US- 


led alliance that evicted Iraq 
in 1991, means Jordan has a 
more pressing economic 
interest in peace than many 
of its Arab neighbours. 

This may partly explain 
why King Hussein took 
greater risks in arguing that 
the Arabs should give Mr 
Netanyahu more time, even 
though the Israeli leader 
rejected from the outset 
retu rnin g more conquered 
Arab land in exchange far 
peace, and has ruled out a 
Palestinian state on the (for- 
merly Jordanian) West Bank 
with occupied Arab east 
Jerusalem as its capital At 
June's Arab summit in 
Cairo, the first since the Gulf 
crisis, Jordan resisted Syri- 
an-led demands for an imme- 
diate end to diplomatic and 
commercial ties with Israel. 

But September's ferocious 
fighting between Israeli 
troops and Palestinian 
policemen across the Jordan 
river on the West Rank , the 
result of Mr Netanyahu's 
failure to implement even 


the Interim self-rule agree- 
ment the Palestinians 
reached last year with Mr 
Rabin, seems to have forced 
the king to rethink. 

He was criticised for 
attending last month's emer- 
gency summit between Mr 
Netanyahu and the Palestin- 
ian leader Yassir Arafat in 
Washington - whereas Presi- 
dent Hosni Mubarak of 
Egypt garnered Arab plau- 
dits by staying away. But 
the king used the occasion to 
vent all the fury of a 
spurned moderate on the 
Israeli leader. American 
leaks confirmed by the king 
revealed that be had warned 
Mr Netanyahu that his 
extremism and warmonger- 
ing could tip the region into 
an abyss, and fatally under- 
mine the peace camp in the 
Arab world. 

The precariousness of Jor- 
dan's own position should 
the peace process fail and 
West Bank desperation spill 
over the river, is underlined 
by a former Jordanian prime 


Friday November 1 1 996 


minister. "With the [Septem- 
ber] events in Palestine,” he 
warns, “the frustration of 
the Palestinian population 
[in Jordan] is becoming 
equal to that of the ‘East 
Bankers'. That is very, very 
dangerous.” 

In an interview last month 
the King himself warned 
that the Egyptian and Jorda- 
nian peace treaties with 
Israel - the only secure 
achievements of half a cen- 
tury of peacemaking - “will 
definitely be in question if 
there isn’t a strict adherence 
to all agreements", espe- 
cially the Israeli -Palestinian 

accords. “Without the peace 
process," one cabinet minis- 
ter says, “the [1994] treaty Is 
just a piece of paper”. 

The King followed this up 
with his first visit to the 
West Bank since Israel cap- 
tured It from Jordan in the 
1967 six-day war, going out 
of his way to support Mr 
Arafat and allay Palestinian 
suspicions of Jordanian col- 
lusion with Israel 

At home, he has been 
under pressure since the 
riots to replace the reform- 
ing government of prime 
minister Abdel -Karim Kabar- 
itl Some leading Jordanian 
politicians sense be may cir- 
cle the wagons with a broad- 
based national and national- 
ist coalition, perhaps includ- 
ing the fundamentalist 
Islamic Action Front, the 
most cohesive opposition 
group, which helped keep 
the August events within 
constitutional bounds. 

Senior officials say the 
hope Is that increased pres- 
sure on Israel from Washing- 
ton after next week's US 
elections, combined with a 
united Arab front led by 
Israel's peace partners, 
Egypt and Jordan, will trans- 
late into internal pressure 
on Mr Netanyahu to change 
course - especially from 
Israel’s internationally- 
minded business commu- 
nity. Unless that happens, 
they believe, there Is little 
prospect of the Middle East 
fashioning a framework for 
moving forward, and there- 
fore little chance of Jordan 
becoming an economic hub 
for the region. 

“You have to offer yourself 
as a region," says a senior 
official responsible for strat- 
egy. “There is no alternative, 
even if. as yet. we don't have 
a region. These are very dif- 
ficult times. It will happen, 
but when is a question I can- 
not answer.” 



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10 


FINANCIAL TIMES 


FRIDAY NOVEMBER l 1996 


II JORDAN: Politics and economics 


Economy; by David Gardner 


All dressed up with nowhere to go? 


Netforeighifirtot inwestment. 


$mffion 
60 — 


The success of 
macroeconomic 
reforms is diluted 
by continued 
regional strife 

The election in May of Mr 
Benjamin Netanyahu as 
Israel's prime minister at the 
head of a hardline coalition 
opposed to retur ning con- 
quered Arab land in 
exchange for peace has 
given Jordan's economy the 
look of being all dressed up 
with nowhere to go. 

After near financial and 
economic collapse at the end 
of the 1980s, Jordan has suc- 
cessfully stabilised its 
macroeconomy. It has also 
put in place in vest or -friendly 
laws intended to create a 
regional base for a Middle 
Eastern market it expected 
to expand and become inte- 
grated as a result of the 
peace process between the 
Arabs and Israelis. But that 
has not happened. 

Partly as a consequence, 
attendant restructuring 
problems - such as the lift- 
ing of bread subsidies that 
convulsed the kingdom in 
riots in August - and secu- 
lar problems such as fast- 
dwindling water resources, 
which can only be solved 
wit hin a regional accord, 
look more Intractable. 


Throughout the 1970s and 
most of the 1980s, Jordan 
prospered from the surge of 
oil wealth from its Arab 
neighbours, and by feeding 
the undemanding Iraqi mar- 
ket throughout the 1980-88 
Iran- Iraq war. But then the 
mld- 80 s oil price collapse, 
draining off the flow of aid 
and Jor danian remittances 
from the Gulf, was followed 
by the 1990-91 Gulf crisis. 
This closed off Jordan’s big- 
gest market in Iraq and iso- 
lated the kingdom from the 
Gulf, after Ring Hussein 
refused to support the West- 
ern -Arab coalition that 
evicted Iraq from Kuwait. 

Nevertheless, backed by 
the International Monetary 
Fund and the World Bank. 
Jordan in 1990 launched a 
thorough restructuring pro- 
gramme. which until last 
year yielded average annnai 
growth in GDP of 6 per cent, 
cut inflation from 16 to just 
over 4 per cent, and slashed 
the budget deficit from over 
18 to around 5 per cent oF 
GDP. 

Beyond macroeconomic 
stabilisation and the mainte- 
nance of a strong anti con- 
vertible dinar through high 
Interest rates, the govern- 
ment has cut corporate taxes 
heavily, liberalised foreign 
investment rules, consoli- 
dated the banking sector and 
reformed the securities mar- 


External debt 

as a % of GDP 
200 — 



ket, started down the road to 
privatising state assets and 
halved the weighted average 
tariff to around 17 per cent. 

By the end of this year, it 
hopes to have sealed a part- 
nership agreement with the 
European Union, and has 
already started negotiations 
to join the World Trade 
Organisation - the two 
clearest signals of its wish to 
be integrated with the inter- 
national economy. 

In mid-reform. Jordan 
placed a big strategic bet - 
signing its 1994 peace treaty 
with Israel, and banking on 
the emergence of a Jordan- 
Israel -Palestine “triangle" of 
cross-border economic inte- 
gration, investment and 
development, 

High investment during 
the fat years had developed 
a small but solid manufac- 
turing base, with big state- 
dominated companies In pot- 
ash, phosphates and fertilis- 
ers, cement and refined oil 
products, and smaller pri- 
vate ones producing pharma- 
ceuticals, detergents and 
chemicals, footwear and tex- 
tiles, and processed foods. 
The fertiliser business has 
internationalised through a 
bold joint-venture policy 
aimed at securing more 
added value and long-term 
markets. But to attract des- 
perately needed investment 
- from foreigners and Jor- 
danians who hold an esti- 
mated S6bn abroad — Jordan, 
without the size of Egypt or 
the riches of the Gulf, had to 
expand from a s mall market 
of 49m people to a base for 
the region. The peace pro- 
cess appeared to be the key. 

"The peace process added 
something unique to a strat- 
egy to Integrate oar econ- 
omy internationally," says 
Mr Taleb Rlfa’i, director of 
the Investment Promotion 

Corporation, the govern- 
ment's new “one-stop shop" 
for foreign investors. “We 
started seeing ourselves as a 
bridge between the Arabs 


and Israel, and a processing 
centre for money, goods and 
services.” 

First-quarter direct Invest- 
ment approvals of $300m. 
about one fifth from abroad, 
showed modest promise - 
which quickly faded with 
the Israeli election. 

But hopes that the 1994 
treaty would lift Jordan's 
economy Into the middle 
income bracket were not 

materialising even before 
the advent of Mr Netanyahu, 
and his subsequent freeze on 
the peace process with the 
Pal tyHniana and Syria. "Eco- 
nomic logic cannot be a sub- 
stitute for political prog- 
ress,” Mr Rifa’l ruefully 
acknowledges. 

Jordan received nothing 
like the peace "dividend” 
Egypt got for its 1979 treaty 
with Israel, which still 
amounts to nearly $4bn for- 
eign aid a year and the near 
halving of its foreign debt. 
The kingdom instead got 
modest sovereign debt write- 
offs, mainly from the US and 
UK, cutting the debt from 
$8.4bn in 1991 to $6J!bn now. 
That Is still roughly equiva- 
lent to Jordan’s GDP and 
this “overhang” Is putting 


pressure on the current 
account, at a time when Jor- 
danian export options are fox 
from dear. 

The Palestinian West 
Bank, let alone the much 
bigger, more sophisticated 
Israeli market, is all but 
closed to Jordan for what 
Israel Insists are security 
reasons but Amman con- 
strues as protection of a cap- 
tive market. Jordanian 
cement, for instance, when it 
can get into the frequently 
blockaded occupied territo- 
ries. has to travel on a 
"back-to-back” system, 
unloading at the border and 
reloading in the West Bank: 
leaving Jordan at $46.50 a 
ton. it arrives in Gaza at $91 
a ton, erasing Jordan's com- 
parative advantage against 
Israeli suppliers. 

But it is above all in Iraq, 
which even after the Gulf 
War was talcing ’ 20 per cent 
of Jordanian exports, where 
the pressure is becoming 
acute. The indefinite post- 
ponement of UN-sanctioned 

**>l nm a ni ten-inn '* ofl sales tO 

enable Iraq to buy food and 
medicine has combined with 
Jordan's decision nearly to 
halve Its oU-for-goods barter 


trade with Iraq. This. UN- 
agreed, protocol allowed Jor- 
dan to import $400m in Iraqi 
oil at a discount, in 
exchange for goods that 
Amman paid Jordanian mer- 
chants for supplying. In 
practice, Jordanian export- 
's were supplying for more 
- leading to arrears on the 
protocol of $iL3bn, officials 
say. The government's deci- 
sion to rein in this trade 
means that total Jordanian 
exports are now growing at 
only io per cent, against 
nearly 50 per cent In 1994-95. 

All this has highlighted 
once again the a Haiti Jor- 
dan faces about where to 
aim its goods - regionally or 
internationally. Mr Mofleh 
Akel. senior credit mana ger 
at Arab Bank. Jordan's lead- 
ing bank, says "the Iraqi 
market is a strategic market 
for us. and we can't easily 
replace it”, adding that, 
"with exceptions like fertil- 
iser, to go regional Is more 
practical”. 

Mr Riad Fariz. the new 
governor of the central bank, 
by contrast detects the 
beginnings of "a structural 
shift towards more demand- 
ing markets”, with exports 



- - 

... .-me ... 91 

SauKMK ja aaBU Otti W m- ' 


to Europe, for instance, up 
fivefold since 1991. “My view 
is that with globalisation, if 
we cannot compete Interna- 
tionally then we cannot com- 
pete regionally.” he says. 

Tbe central bank has come 
under attack for maintaining 
high Interest rates - cur- 
rently ranging between 13 
and 14 per cent against infla- 
tion of 4 to 5 per cent if the 
one-off effect or the bread 
price rises is discounted. Yet 
these rates are a vital hook 
for remittances and repatri- 
ated capital - running at 
JD504m in the first half of 
thi«! year against JD797m all 
last year, or JD265xn in 1991 
- one of the kingdom's three 
main sources of income 
along with tourism and fer- 
tiliser exports. Mr Fariz also 


intends to deter dollar specu- 
lators. While there is virtu- 
ally no dinar liquidity, the 
banks hold around $3bn in 
dollar deposits and the gov- 
ernor Is determined the price 
of redemption will be high. 

The policy diverts savings 
into land and high-yield gov- 
ernment instruments, but 
Mr Fariz maintains that 
investment is still high tat 
over 30 per cent of GDP), and 
points to central bank rate 
rebates and dinar lines avail- 
able to industrial investors. 

“My top priority is to 
maintain the stability and 
credibility of our macroecon- 
omy and vital to that is the 
stability of the dinar.’* be 
insists. "Without macro sta- 
bility. there would be no 
investment at all.” 


Up for stale: the government’s prime privatisation candidates 


At a time when the stalling- of the 
peace process' has the Jordanians 
worrying about where to find stable 
export markets and where to get 
investment to upgrade their 
economy , the sale of state assets 
looks the best hook both for foreign 
investors and an estimated $6bn in 
Jordanian capital held abroad. 

The gover nment , after off 
a. number of hotels, has. yet to 
devise a rounded strategy. After 
August's revolt againstTMF-backed 
bread price rises, itlsalso conscious 
that privatisation should not be 
seen to widen the growing income 
gap between rich and poor, and 
should serve to bolster the 


hard-pressed middle classes. In 
principle, therefore, future buyers 
and private operators will be 
required to keep at least 25 per cent 
of their equity in the market to 
broaden the base of ownership. The 
placement of shares with company . 
employees is being studied, and 
proceeds from the sales will partly 
go towards social safety nets 
ranging from housing to pensions. 

Among thestate assets being 
reviewed for private sale are: 

'• TelMwmniimifaHnng Company 
The TCC monopoly ends in 1998, 
and private mobile telephone 
operators already have 8 per cent of 
the market. Last month, it was 


turned into .a stockholding company 
capvtahsed at JBSBGm. The 
government is seeking a strategic 
partner for 26 per cent of TCC. with 
the rest offered on the stock market. 
• Jordan Electricity. Authority 
JEA was converted into a 
stockholding company in 
September. The government is 
poised to invite tenders for 
independent power generation - : 
projects prior to privatisation. 
e> Water and transport 
. The government wfll. privatise the : . 
Aqaba Railway Corporation and . 
public bus companies and will ' 
invite private investment in 
transport and water projects. 


' • Jordan Cement Factories 
The state owns 49& pet cent oC 
Jordan Cement and is kxdung for a 
strategic partner from at least six 
applicants, among them Lafarge of 
France and Holderbank of 
Switzerland. 

• Arab Potash Company (APQ 
and Jordan Phosphate Mines 
Company (JPMC) 

The state holds 55.3 per cent and 
42.4 per cent in APC and JPMC 
respectively. No decision on these 
highly profitable and strategic 
assets, has as yet been made, partly 
because of the pan-Arab 
shareholding structure, but officials 
say “they will be studied”. 


M Politics: by David Gardner 

Storms at the ‘oasis’ 


M Relations with Israels by Judy Dempsey _ 

Fences may not mend 



Recent events 
have raised 
doubts about the 
king's system of 
government 

About a year ago. King 
Hussein returned to Jordan 
to find that his then prime 
minister had erected a mon- 
umental statue to him out- 
side his office - built in 
North Korea and with Ozy- 
mandias dimensions to 
match. The King, himself a 
subtle man, politely thanked 
him, but ordered its immedi- 
ate removal. 

But if he thought that arti- 
fact might seem provocative, 
its swift replacement by an 
obscure monument resem- 
bling a sheaf of wheat is 
unbeatable for its poor tim- 
ing. For the new prime min- 
ister. Mr • Abdel-Karim 
Kabarlti. and the Hashemite 
monarchy he serves, in 
August had to face down a 
revolt against a more than 
doubling of bread and wheat 
prices implemented as part 
of an IMF-backed restructur- 
ing programme. 

The rioting forced the 
King to suspend parliament 
and send in elite units of his 
army. It was tbe biggest 


domestic challenge the 
regime had faced since simi- 
lar riots in 1989 against IMF- 
agreed fuel price rises. 

Just like then, it was not 
citizens of Palestinian origin. 
- easily 60 per cent of the 
43m population and seen as 
the country’s most serious 
security concern since the 
1970-71 civil war with the 
Palestine Liberation Organi- 
sation - who rose in revolt. 
It was the ethnic or “East 
Bank” Jordanians of Bed- 
ouin origin, the bedrock of 
the king’s army and admin- 
istration. 

The king quickly brought 
the situation under controL 
Few, in or outside Jordan, 
took seriously his claim that 
Iraqi agents were behind the 
unrest. The origins of the 
discontent are domestic. 

Put simply, Jordanians 
were promised that the 
deeply unpopular 1994 peace 
with Israel would raise 
incomes, whereas it has 
failed to deliver any "peace 
dividends”. Although gov- 
ernment cutbacks and struc- 
tural economic reform would 
have had to happen anyway 
following near economic col- 
lapse at the end of the 1980s, 
the ensuing hardship and 
widening of tbe gap between 
rich and poor is associated 


with the king's enthusiasm 
for closer links with Israel, 
and his volte-face last year 
on Iraq, after refusing to join 
the US-led alliance against 
President Saddam Hussein's 
1990 invasion of Kuwait. 

To keep peace with Israel, 
moreover, the authorities 
have had to tighten their 
grip on the "guided democ- 
racy" that the King has 
touted as a model for the 
region. This democratic 
experiment, with an elected 
parliament including the 
fundamentalists of the pan- 
Islamlc Moslem Brother- 
hood, still makes Jordan an 
oasis of liberalism in a des- 
ert of dictators and despots. 
But it is under heavy pres- 
sure, especially with the 
peace process now at a halt. 

The ferocious fighting in 
September on the West Bank 
between Israeli troops and 
Palestinian security forces is 
still reverberating through 
the kingdom. It prompted 
tbe King - the Arab leader 
who has done most to build 
bridges towards Israel - to 
warn that the extremism of 
the government of Mr Benja- 
min Netanyahu could tip tbe 
region into disaster. 

“With the events in Pales- 
tine.” warns a former Jorda- 
nian prime minister, “the 


frustration of tbe Palestinian 
population [in Jordan] Is 
becoming equal to that of 
the ‘east bankers'. That is 
very, very dangerous.” 

But, for the moment, the 
system has shown its resil- 
ience. 

August's discontent ini- 
tially crystallised around the 
Brotherhood's Islamic 
Action Front (IAF). The IAF 
became the biggest party - 
with 34 of 80 seats - when 
the King responded to the 
1989 riots by restoring parlia- 
ment, dissolved in 1957 after 
pan-Arab nationalist agita- 
tion. In the 1993 elections, 
the IAF was whittled down 
to 16 seats, as the regime 
nervously changed voting 
procedures to ensure more 
loyalist tribal grandees were 
elected. 

But after the August 
events, the King appears to 
have recognised that the IAF 
- which grouped around it 
just over half Jordan's frag- 
mented political spectrum In 
a call for Mr Eabarrti's resig- 
nation - was a factor in the 
system’s resilience, a loyal 
apposition that helped keep 
the outbreak within manage- 
able bounds. . 

Subsequently, in the face 
of Israeli obduracy towards 
the Palestinians, King Hus- 
sein has been strident in his 
criticism of Mr Netanyahu, 
often foreshadowed in his 
remarks by Crown Prince 
Hassan, his younger brother 
and heir to the throne. 

All of this taken together 
has led Amman’s rumour- 
driven political salons to 
expect a change of govern- 
ment. 

After the 1989 riots, the 
King Immediately dismissed 
his then premier. This time, 
however, he has stood firmly 
by Mr Kabarlti. The ambi- 
tious prime minister is 
closely associated with the 
turn towards Israel and 
away from Iraq, and is carry- 
ing out an economic reform 
policy to which the regime is 
firmly committed. But one 
function of the premiership, 
within a political elite that 
rotates frequently, is as 
li ghtning 1 rod for tfw monar- 
chy. “Most of the criticism of 
Kabarlti is in fact directed at 
the King." observes one lead- 
ing politician. 

He, and others like him. 
believe the King will dis- 
pense with Mr Kabariti and 
seek a new, “more national 
and nationalist” administra- 
tion. possibly with more Pal- 
estinian- Jordanians In its 

ranks. While few such sce- 
narios are without self inter- 
est, they at least have ample 
precedent to draw an. And 
King Hussein will need more 
than his Bedouin troops and 
Intelligence services to bat- 
ten down the hatches 
against the storms ahead. 


It seems the 
accord between 
the kingdom and 
Israeli leaders 
died with Rabin 

When Mr Benjamin 
Netanyahu was elected 
prime minister of Israel last 
May. Jordanian officials 
chose their words carefully. 
Unlike the other Arab states, 
which viewed Mr Netanay- 
hu’s election with more than 
trepidation, believing the 
peace process begun five 
years earlier at Madrid was 
in jeopardy. Jordan pre- 
ferred to wait 

"We wanted to give Netan- 
yahu the benefit of the 
doubt,” one senior Jordanian 
official explains. “Until then, 
we bad high expectations - 
perhaps too high - about the 
peace process.” 

That those expectations 
were not justified seems to 
have been confirmed in 
recent months by the break- 
down of Jordan’s special 
relationship with the Israeli 
government. 

Over the years, King Hus- 
sein of Jordan forged a par- 
ticularly close relationship 
with Mr Yitzhak Rabin, the 
former Labour prime minis- 
ter assassinated by a far- 
right wing Jew a year ago. 
“We honestly felt he under- 
stood not only our needs but, 
more importantly, the Arab 
world," a Jordanian official 
says. 

Even though Egypt was 
the first Arab country to 
sign a peace agreement with 
Israel back In 1979. Jordan's 
links with Israel were in fact 
closer, culminating in a 
peace trgbty in 1994. Jor- 
dan’s borders were opened: 
trade improved. And 
although there were many 
outstanding issues to be 
resolved - most notably the 
future status of Jerusalem — 
Jordan felt it had a reliable 
partner in Mr Rabin. His 
death, and the subsequent 
election of Mr Netanyahu, 
created a vacuum in rela- 
tions between Jordan and 
Israel. It is one that Mr 
Netanyahu's conservative 
Likud-led coalition seems 
unable to fill. 

Two examples serve to 
illustrate the deterioration of 
trust. Just days before Mr 
Netanyahu announced his 
decision to expand the Jew- 
ish settlements in the West 
Bank last September, Mr 
Do re Gold, one of Mr Netan- 
yahu'S closest advisers, vis- 
ited King Hussein to discuss 
the slow pace of the peace 
process. Not a word was said 
about the settlements. The 
day after Mr Gold returned 
to Jerusalem, the settlement 
decision was announced. A 
few weeks later, Mr Gold 


returned to Amman hut did 
not tell King Hussein of Mr 
Netanyahu’s decision to 
open a tunnel exit close to 
the Al-Aqsa Mosque in Jeru- 
salem. The next day, the 
tunnel was opened, a move 
that sparked off violent dem- 
onstrations and fighting 
between Israeli and Palestin- 
ian forces. 

Jordanian officials, who in 
the past conveyed their opin- 
ions on any sensitive issues 
through diplomatic chan- 
nels, this time chose to criti- 
cise the Netanyahu govern- 
ment publicly. The fact that 
Israel dismissed - initially - 
such criticism, was, accord- 
ing to Jordanian officials, 
indicative of the way the 
Likud government perceived 
Jordan and the Arab world. 
“Likud is not sensitive to 
Arab needs or Jordan's,” a 
Jordanian official said. 
“Rabin understood them." 

Those needs are consider- 
able. The peace process is 
not only about legitimating 
Palestinian self-rule, or the 
establishment of a civil soci- 
ety and administration in 
the West Bank and Gaza, or 
the development of a new 
security architecture in the 
Middle East: for the Jordan- 
ians. it is the tool that wil] 
help resolve a complex range 
of issues. 

These issues include the 
fate of Palestinian refugees 
in Jordan, the kingdom's sta- 
tus in relation to the Holy 
sites in Jerusalem and its 
relations with the West 
Bank. And since 70 per cent 
of Jordan’s population is Pal- 
estinian, Amman can ill -af- 
ford to have unstable rela- 
tions with either the 
Palestinians in the West 
Bank, who are far from 
united in their policies 
towards Jordan, or Israel. 

Yet the way the Netan- 
yahu government has con- 
ducted foreign policy with 
Jordan and the Arab states 
has. Ironically, galvanised 


the Arab world against 
Likud. And, regardless of the 
gap between rhetoric and 
substance, it has brought it 
closer to Mr Arafat, the pres- 
ident of the Palestinian 
Authority who, over the 
years, has had a difficult 
relationship with his Arab 
Idn- 

Last month, King Hussein 
made a visit to the West 
Bank town of Jericho - his 
first since 1967 - as a show 
of solidarity to the fledgling 
Palestinian state and as a 
demonstration of his anger 


with Mr Netanyahu. 

Since that visit, it has 
been left up to Mr Ezer Welz- 
man, the president of Israel, 
who himself has been out- 
spoken about the Netanyahu 
government and the danger- 
ously slow pace of the peace 
process, to try to mend 
fences with Amman. But for 
Jordanian officials, bringing 
relations between Israel and 
Jordan back on an even keel 
depends precisely on the 
peace negotiations yielding 
results. The omens, so far, 
are not good. 


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FRIDAY NOVEMBER 1 1996 



FINANCIAL times 


1 1 


JORDAN: Finance and industry III 


Banking; by Alexandra Capoiio 



Fiscal tightening 

and consolidation 
of its sector 
dominate Central 
Bank thinking 

Jordan's Central Bank 
continues to be committed to 
its tight monetary policy, 
aimed at keeping the lid on 
inflation, unofficially esti- 
mated at 6 to 7 per cent, 
increasing' domestic savings 
and protecting the Jordanian 
dinar against “dollarisa- 
tion". 

While the strategy seems 
to. have been successful, 
bankers say ail-time hi gh 
interest rates have affected 
investment and growth. 

A senior Central Bank offi- 
cial concedes that economic 
growth has been affected but 
says that lack of demand for 
the dinar means there is no 
alternative to maintaining 
the policy. 

The CBJ is determined to 
strengthen faith, in the dinar 
after the crisis of 1989, which 
led to a 45 per cent devalua- 
tion of the currency — a 
memory still painfully pres- 
ent for most Jordanians. 

Despite lending rates of 
around 13-16 per cent and 
deposit rates hovering 


line on tough policy 


Tourism; by Alexandra Capelle 


around 9 per cent, some 40 
per cent of bank deposits - 
or about $3bn - are still held 
in foreign currency. 

Although growth in dollar 
deposits is not as strong as 
in recent years, hitting only 
3 -8 Per cent in the first eight 
months of 1996. compared 
with the same period last 
year, growth in dinar depos- 
its - 2L4 per cent - remains 
lower in comparison. 

A 5 per cent margin 

between US dollar and dinar 
deposit rates is designed to 
discourage dollarisation. 

"Our policies are supposed 
to be a guarantee to the 
investor and credibility is 
increasing," says the Central 
Bank governor, Mr Zyad 
Fariz. “But if they want to 
keep their dollars, let them 
pay the price." 

At the same time, the CBJ 
is still struggling to build 
sufficient foreign reserves to 
comply with International 
Monetary Fund require- 
ments. Whereas cash 
reserves this year (SSSOm to 
$600m) ■ are worth two 
months of merchandise 
imports and are close to the 
1996 IMF target, in the long- 
run Jordan needs to raise 
them to levels worth three 
months of merchandise 
imports ($900m). 


The CBJ monetary policy 
does appear to have suc- 
ceeded in controlling credit 
expansion - without regula- 
tory limits since 1993 - 
through its interest rate pol- 
icy. It projects that credit 
granted by banks should this 
year be significantly lower 
than in 1995. In the first nine 
months of 1996 bank lending 
Increased JD23Tm compared 
with an increase of JD457m 
for the whole of last year. 

High rates of 9.5 per cent 
offered by the CBJ on certifi- 
cates of deposits have dried 
up large amounts of Jordan’s 
cash liquidity. “A lot of 
banks are seriously short of 
dinars, which has pushed op 
rates for months." a foreign 
banker says. 

Mainly responsible for a 
rise in total net profits in the 
banking sector hum JDlOOm 
in 1994 to JD122m last year 
were the larger commercial 
banks, such as Arab Rank 
and Housing Bank, which 
saw profit increases of 
JDiOm and JD4.5m respec- 
tively. In contrast, smaller 
investment banks generally 
stated flat profits or losses. 

Last year’s chief objective 
for the Central Bank was the 
consolidation of the frag- 
mented banking sector - 
made up of 21 foreign and 


commercial hanks with more 
than 400 branches. 

To encourage mergers, 
minimum capital require- 
ments were raised from 
JD5m to JD20m. The new 
mi nimum was supposed to 
be effective from the end of 
this year. but. in view of dif- 
ficulties emerging for many 
banks, an extension until 
mid- 1997 has been granted to 
those already bolding capital 

of JD15m and more. 

Three of the smaller banks 
look unable to raise capital 
to JDl5m by the end of this 
year and could consequently 
face penalties from the Cen- 
tral Bank. To avoid such a 
scenario, Philadelphia 
Investment Bank is cur- 
rently looking for a partner. 
Similarly. Amman Invest- 
ment Bank might soon agree 
to a takeover by Arab Bank. 

So far, only one merger 
has materialised. The union 
of Jordan National Bank and 
the Business Bank has cre- 
ated Jordan's third largest 
h ank. With capital of JD22m. 
the new concern, which will 
operate under the name of 
the Jordan National Bank, 
will rank only behind Arab 
Bank (JD44m) and Housing ' 
Bank (JD25m). 

The Central Bank is also 
keen to develop private capi- 


tal markets by combining 
the still separated commer- 
cial and investment banking 
into comprehensive institu- 
tions. Specialised credit 
institutions, such as Indus- 
trial Development Bank and 
Housing Bank, are to be 
integrated into the commer- 
cial banking sector. This 
should make them less 
dependent on external finan- 
cing and subsidies. 

In the longer term, 
another problem facing the 
CBJ, says Mr Fariz, is the 
possibility of a separate Pal- 
estinian currency. The sub- 
sequent pressure of the 
redemption process is expec- 
ted to increase speculation 
against t he Jordanian dinar: 
the Palestinian West Bank 
currently holds an estimated 
$L2bn In deposits, of which 
42 per cent are in dinars - 
nearly a third of overall 
dinar circulation. 

As a defence against dinar 
redemption, a $300m fund 
has been established by the 
CBJ. But. according to one 
banker, “economically, polit- 
ically and practically the 
Palestinian currency does 
not pose an immediate 
threat as it will need some 
time to gain credibility and 
become an alternative to the 
Jordanian dinar". 


The Stock Exchange; by Alexandra Capelle 


Sure but silent revolution 


The reforms 
needed to attract 
foreign capital are 
being made - 
albeit quietly 

The Amm an Financial 
Market — Jordan's stock 
exchange - is having 
another disappointing year, 
crushing investors’ hopes 
that last year's Middle East 
Economic summit in Jordan 
would fuel an equity invest- 
ment boom. 

Late implementation of 
reforms and new regula- 
tions, continued regional 
instability, record-high inter- 
est rates and shaken market 
confidence have put tremen- 
dous pressure on prices 
throughout the last nine 
months. However, the clouds 
could be lifting. The king- 
dom is increasing its deter- 
mination to speed up market 
liberalisation following. 
International Monetary 
Fund adjustment guidelines 
and a radical restructuring 
of the stock market is part of 
the package. 

The Amman Financial 
Market has been missin g out 
an foreign capital flows into 
the Middle East, with a fore- 
cast of a mere $25m in total 
annual foreign flows thi s 
year, compared with an esti- 
mated S700m for Egypt. 

The AFM general index 
fell from 159.2 at the close of 
1995 to a three-year low of 


136-8 in July 1996 and is cur- 
rently hovering around the 
146 mark. Annual turnover 
fell further from JD495m in 
1994 to JD419m last year, 
with turnover for the last 10 
months at JDl70m, a drop of 
52 per cent compared with 
the same period last year. 

Record-high interest rates 
of up to 16 per cent have 
been holding the stock mar- 
ket hostage, squeezing 
liquidity as investors spurn 
shares for bank deposits, 
treasury bills and real 
estate. A significant rise in 
corporate profits, expected to 
increase by 28 per cent in 
1996 according to the AFM, 
is mainly due to rising prof- 
its In construction, industry 
and mining , which are doing 
significantly better than 
other sectors. 

A low free float of shares 
makes much needed foreign 
investments difficult, with 
attractive listed companies 
such as Arab Bank - respon- 
sible for a third of market 
capitalisation - having 
already reached the foreign 
ownership ceiling of 50 per 
cent. - Other big Buccess sto- 
ries. such as Housing Bank. 
Arab Potash Company and 
Jordanian Phosphate Mines 
Company, have minimal 
free-float capacities left 

“It means that foreigners 
• are very restricted in terms 
of what they can buy," says 
Mr Angus Blair, head of Mid- 
dle East and North Africa 
Markets at ING Barings. _ 


Amm an Stock Exchange 











1995 


1996 




Mergers and faster privati- 
sation — which would help 
Increase capital flows, give a 
greater choice of available 
stocks and allow for bigger 
investments — are high up 
on the lists of foreign inves- 
tors demands. 

Five leading privatisations 
- among them the Telecom- 
munications Company and 
the Jordan Electric Author- 
ity - are in the process of 
implementation- this year. 
Currently, the government is 
inviting bids from foreign 
cement companies for a key 
holding In its Jordan Cement 
Factories Company. 

But this- year's figures 
-show as yet little investment 
response to the govern- 
ment's efforts. Although Jor- 
danian stocks are cheaper 
this year than last, with the 
average price/earnings ratio 


currently at 14JJ, down from 
16.5 last year, analysts say 
'that corporate earnings are 
still lower and the market 
more expensive than many 
other competing emerging 
markets: ■ " * 

Critical to any growth will 
be a much faster implemen- 
tation of reforms to liberal- 
ise investment rules. 

“People rai the ground see 
a lot of movement but the 
foreign investor’s attention 
is diverted to neighbouring 
countries," says Mr Omar 
Masri, managing director of 
Atlas Investment Group. “A 
sort of silent revolution is 
taking place in Jordan in 
terms of the reforms - they 
are finally happening.” 

Mr Masri forecasts that it 
will take a good three to six 
months before foreign inves- 
tors recognise the c han g e s. 


The first measures aimp-d 
at encouraging foreign 
investment were taken in 
late 1995. And earlier this' 
year a new bylaw facilitating 
foreign investment, an 
investment law and a tax- 
cutting law for local corpora- 
tions were passed in an 
effort to increase the 
extremely low liquidity of 
the market. Other laws 
expected later this year 
should provide further stim- 
uli. 

The response, however, 
has so far disappointed. “In 
terms of the expected inflow 
of foreign investments, noth- 
ing substantial happened,” 
says Mr Mohamed Tash, gen- 
eral manager of National 
Securities, a subsidiary of 
Jordan's Business Bank. 
Apart from problems specific 
to Jordan, Mr Tash blames 
an ebb in the global cycle of 
interest in emerging markets 
for the lack of investments. 

However, the most impor- 
tant reform for the market is 
yet to come. By the end of 
this year, a new securities 
law. designed to loosen the 
state’s grip over the 
exchange and to give faster 
and clearer presentation of 
company results as well as 
computerise trading activi- 
ties, will be implemented. 
The government intends to 
separate the AFM into a 
watchdog “Securities 
Ex c han ge Commission" and 
the privately run “Amman 
Stock Exchange". 


Natural resources: by Alexandra Capelle 


Support for 
‘backbone’ of 
the economy 


Export composition* 


Joint ventures 
should guarantee 
the continued 
strength of the 
minerals industry 

Jordan's min erals industry, 
the backbone of its economy. 
Is set for steady expansion 
as new Joint ventures, more 
added- value from down- 
stream production and 
increased foreign interest 
develop it further. 

Jordan's most important 
minerals — phosphates and 
potash - are largely respon- 
sible for the significant rise 
in the country’s merchan- 
dise exports from $lbn in 
1993 to $1,771X0 in 1995 and 
for an estimated sectoral 
earnings growth of 44 per 
cent this year. 

The two main forces of the 
industry - the Jordan Phos- 
phate Mines Company 
(JPMO and the Arab 
Company <APC) - are trying 

hardtofflPitalisetmmcpand- 

ing- world demand. The two 
companies are involved in 
seven downstream pntfKbi 
as well as their own plant 
expansion 

which should raise combined 
annual upstream capacity to 
12.1m tonnes by the end of 
the millennium. 

JPMC is the ^ds sec- 
ond largest exporter of rock 
phosphates (after 
with 4.2m tonnes. It expects 
a total revenue of 5340m to 
«350m in 1996, compared 


with 3323m last year. 

The company is not produ- 
cing at its fall 7m tonnes 
capacity but, according to 
JPMC’S managing director. 
Mr Sameh Madani, growing 
interest for Jordan's, environ- 
ment-friendly phosphates 
from Western Europe could 
change that, with potential 
new amniini orders of up to 
' 1.5m tonnes. 

Earnings this year were 
boosted by a higher quantity 
of sales and the rock phos- 
phate price increase in 1995. 
However, despite continu- 
ously strong demand for the 
raw ma terial, the company’s 
strategy over the last years 
has been to strengthen its 
position by concentrating on 
downstream activity. 

“Due to the marketing sit- 
uation. we realised that -we 
couldn’t continue as sellers 
of rock phosphates only, oth- 
erwise we would be vulnera- 
ble to any changes in the 
world market so we decided 
to go for diversification or 
downstream," Mr Madani 
says. 

The company, which set 
up its own. fertiliser complex 
in Aqaba in- 1982, hopes to 
ensure steady growth by 
three downstream joint ven- 
tures. 

In December this year, 
construction for a 220.000 
tonnes phosphoric add plant 
will he completed by the 
Indo-Jordan Chemicals Com- 
pany. The SITOm project will 
export exclusively to India. 


Phosphates. 13% 


Potash 12% 


Machinery & 
transport 
equipment 21 % 


A similar project Is expec- 
ted to start production at the 
Nippon-Jordan Fertiliser 
Company by mid-1997. The 
$80m compound fertiliser 
plant based near JFMC's 
Aqaba plant will reserve its 
300.000 tonnes mixed fertil- 
iser production for the Japa- 
nese consortium, which 
owns 60 per cent of the ven- 
ture. 

Not yet finalised is a joint 
venture project with Norsk 
Hydro of Norway, which 
intends to hold a majority 
stake In a 440,000-tonne 
phosphoric add plant at Shi- 
diyeh and a fertiliser plant 
at Aqaba. Investment costs 
are estimated to be $400m. 

Like JPMC, APC, Is find- 
ing new strength. It 
increased its net profits to 
$60m last year and raised 
output, sales and export 
earnings to record levels. In 
the first half of 1996. the 
company's revenue rose by 
10 per cent, and net profits 
by 14 per cent compared 
with the same period in 1995. 

The positive results are 
because of an 18 per cent 
rise in sales prices and a 10 
per cent Increase in sales 
volume, boosted in particu- 
lar by fast growing Asian 
demand. Jordan is the 


Chemicals 33% 



world's sixth biggest potash 
producer, with the Asian 
market representing over 75 
per cent of APCs total sales. 

APC, like JPMC a listed 
pan-Arab company with 
majority stakes owned by 
Jordan, bag reached its cur- 
rent capacity maximum of 
1.8m tonnes. Even though 
prices and sales are up, the 
end of 1996 should see the 
same results, in net profits as 
last year because of the 
higher cost of fuel, electric- 
ity and labour. 

Apart from completing its 
second expansion stage, 
which will raise production 
capacity to more than 2.lm 
tonnes by 1999 in a $160m 
investment, APC is busy pre- 
paring to build an industrial 
potash plant with a 100,000 
tonnes -per-y ear capacity. 
Contracts for the $9m plant 
were earlier this year 
awarded to Mannesmann 
and Messo of Germany. Pro- 
duction of the industrial and 
pharmaceutical exports 
should be up and running by 
late 1997. 

APC and JPMC, as part of 
the public shareholding com- 
pany, Jordico, are further- 
more involved in four Joint 
venture operations. 

Starting production this 


month is the Industrial and 
Table Salt project, worth 
{25m. with an annual capac- 
ity of L2m tonnes of indus- 
trial salt and 32,000 tonnes of 
table and water-softening 
salt. 

The other three projects 
are: a 390m Magnesium 
Oxide project producing an 
estimated 60,000 tonnes per 
year by early 1999; a potas- 
sium sulphate and di cal- 
cium phosphate project in 
Aqaba with a capacity of 
75.000 tonnes and estimated 
cost of $80m: a bromine and 
derivatives project in a 50:50 
joint venture with Israel. 
Details of the last project are 
still confidential, but it was 
decided that the $80m-l00m 
plant will be on the Jorda- 
nian side of the Dead Sea. 

By contrast, projects in 
the oil and gas sector remain 
much more difficult to get 
off the ground. 

Negotiations on a pro- 
posed $2.5hn oil refinery in 
Aqaba were suspended last 
month, according to the Min- 
istry of Energy and Mineral 
resources, as the Corporate 
Holdings of America (CHA) 
consortium, one of three 
interested parties and the 
first pre-qualified for the 
project, faffed to fulfil obliga- 
tions specified in a letter of 
Intent last June. The plant, 
supposed to be built an a 
bull d-operate- transfer (BOT) 
basis, would have brought 
Jordan. 5200m in annual roy- 
alties. 

Another large project is a 
joint venture liquefied natu- 
ral gas deal involving an 
Israeli ■ consortium. Near 
East Energy of Jordan and 
Enron Corporation of the 
US, which has rights . to 
exploit Qatari gas reserves. 

The $$00m project remains 
extremely tentative, how- 
ever, largely because of geo- 
political sensitivities. 


Few reservations 
about the future 


Despite recent 
falls in bookings, 
international 
hoteliers remain 
confident 

Lord Byron’s pilgrim Childe 
Harold longed for the desert 
in order to forget the human 
race. 

Today, he might find even 
the desert over crowded. 

The contemporary travel- 
ler has difficulties in grasp- 
ing the appeal places such as 
Petra had to last century’s 
visitors, who found the rock- 

carved city remote, exotic 
and mysterious. 

Jordan's sites still capture 
the imagination, but much 
of their mystery is now 
destroyed by loud tourist 
groups. In Petra, pedestrian 
and horse “traffic jams” 
block the narrow, channel- 
like entrance called the Siq. 

Despite government mea- 
sures restricting daily visi- 
tors to 2,500 and high 
entrance fees, Jordan's main 
tourist attraction has been 
somewhat overrun in recent 
years. 

Jordan's tourists have 
more than doubled in the 
past five years, following the 
end of the second Gulf War 
and the beginnings of the 
peace process. 

There were a record i.im 
visitors last year and, after a 
long lull, the government 
and private investors are 
rushing to get their share of 
the profitable tourism cake. 
In 1995-1996 some 45 new 
hotels with 8£00 beds and a 
total capital investment of 
JD133m were approved by 
the government, adding to 
the current number of 156 
hotels in the country. 

The tourism sector, the 
country's third largest for- 
eign currency earner after 
expatriate remittances and 
mineral exports, contributes 
an estimated 10 per cent to 
gross domestic product and 
brought in revenue of $700m 
last year. It was expected to 
top the $lbn mark this year. 

But much depends on 
regional stability. Israel's 
bombardments of Lebanon 
in April. Jordan's bread riots 
in August, instability in 
neighbouring Iraq and the 
latest flare-up of Israeli-Pal- 
estlnian violence last month 
have all affected tourism. 

According to hotel manag- 
ers and tour operators the 
sector has suffered an esti- 
mated 40,000 hotel booking 
cancellations and a decrease 
of 40 per cent in tours in the 
last few months. 

“Until March, we were 
doing very well and we 
expected 1996 to bring higher 
occupancy because of peace 
results.” says Mr Chawki 
Ayoub, manager of the Inter 
Continental in A mma n . 
"Usually October and 
November are very good 
months, but we have already 
had 125 cancellations.” 



Rate tranquBGty: on peak days, visitors to Petra can number 4.000 


At an industry conference 
last month, the minister of 
tourism, Mr Saleh Irsheidat, 
said: “Tourism in Jordan has 
been declining in the past 
six months and there are no 
signs pointing to improve- 
ment for the rest of the year, 
largely due to political devel- 
opments in the Middle East.” 

Royal Jordanian, the coun- 
try's national carrier, has 
seen 26,000 seat cancellations 
for the September 1996 to 
May 1997 period. According 
to Dr Majdi Sabri, BJ's vice 
president for commercial 
affairs, the number of pas- 
sengers from the US has 
plummeted by 50 per cent 
since the election of the 
hardline Likud government 
in Israel last May. 

Not scared away as easily, 
however, are investors in the 
exploding number of hotel 
developments. Most of them 
expect political tensions to 
fade in the next two years 
and anticipate a peaceful, 
open region at some stage in 
the future, creating opportu- 
nities for cross-border 
regional tours from Syria 
down to Egypt. 

“There is a good reason for 
people going into the hotel 
business in Jordan.” says Mr 
Ayoub. “Once people can cir- 
culate freely there is great 
potential." 

The construction of new 
hotels poses a big challenge 
to the government in terms 
of infrastructure develop- 
ment. Electricity, waterpipes 
and phonelines have not yet 
found their way to areas 
such as the Dead Sea or the 
south beaches of Aqaba. 

Mr Irsheidat gives the 
example of Petra, where the 


government has been unable 
to keep up with the pace of 
construction, and now hotels 
have been asked to provide 
their own water treatment 
plants. Inadequate support 
and complicated rules on 
acquiring land in new devel- 
opment areas such as Aqaba 
have fuelled criticism of the 
government in the private 
sector. Investors also com- 
plain about the lack of an 
aggressive promotion strat- 
egy to lure both tourists and 
investors. Nevertheless, pro- 
jects such as the JD26m con- 
struction of a new 5 Star 
Deluxe Four Seasons hotel 
in Amman, to be completed 
in 1999, are going ahead. 

The risk of the kingdom 
becoming “overhotelled" is 
generally played down. 
According to a feasibility 
study undertaken by the 
management consultants 
Arthur Andersen Interna- 
tional for the Four Seasons 
project, the doubling of 5 
Star Deluxe hotel rooms in 
Amman by the year 2000 
should stimulate overall 
demand, leading to increased 
differentiation between the 
budget sectors and the pre- 
mium end of the market 

Provided the country’s 
economic liberalisation pro- 
cess goes ahead and. more 
importantly, the peace pro- 
cess does not deteriorate any 
further, most investors can 
remain optimistic about the 
potential of Jordan’s tourism 
sector to become the coun- 
try’s leading industry. 

And optimism prevails. As 
Dr. Sabri puts it: “As long as 
you have faiths on earth, 
people will come and visit 
the Holy Land." 



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MANAGEMENT 


T he snag about manage- 
ment books. From the 
author’s point of view. Is 
that there are so many 
of the damned thin gs around. To 
stand out on the bookstall you 
need a snappy title and an acces- 
sible theme. Perhaps most of all. 
the publisher needs to convey a 
sense of threat to the passer-by 
which can be dispelled only by 
buying the book. 

On these criteria alone. The 
Witch Doctors deserves success. 
Its pitch is deftly laid out in the 
subtitle: "What the management 
gurus are saying, why it matters 
and how to make sense of it.” 
Management theorists, the pre- 
amble tells us. are today’s ver- 
sion of Shelley's poetic “un- 
acknowledged legislators". Not 

only do they lay down the law, 
but they have the power to mess 
around with our lives. Only 
through studying their methods 
can we deflect their sinister 
farce. 

The reality of the book is a 
little different. John Mickleth- 
wait and Adrian Wooldridge have 
indeed studied the gurus, and 
tedious work they must have 
found it But as experienced jour- 
nalists - both from The Econo- 
mist - they know better than to 
recreate the experience for their 
readers. Nor. indeed, do they 
insist on their thesis beyond the 
opening pages. The' growing 
power of gurus and consultants, 
they concede, is mainly a 
response to events. The real cul- 
prit is change and uncertainty in 
the wider world. 

Thus, only a few chapters are 
devoted to the gurus themselves. 
At the outset come the heavy- 
weights: Peter Drucker. described 
as the one management theorist 
who is required reading for every 
educated person: and Tom Peters, 
whom the authors regard as 
flaky but interesting. 

Towards the end comes a chap- 
ter on the lightweights, among 
whom it is good to see Edward 
De Bono and the TofDers. along 
with smaller fry such as Laurie 
Beth Jones, author of the ineffa- 
bly titled Jesus CEO. In between. 
The Witch Doctors is - well - 

another book on management. 

As such, it is not bad at all. In 
their review of management the- 
ory, the authors start with an 
observation of Drucker’s; that at 
the heart ol the modem corpora- 
tion lie the twin principles of 
uncertainty and knowledge. 

Uncertainty, in this view, is the 
central problem: the fact that in 
changing times no corporate 
structure or business theory win 
hold good for long. Knowledge, 
on the other hand, is the answer, 
since the only lasting asset in 
uncertain times is intellectual 
capital. 



FINANCIAL TIMES FRIDAY NOVEMBER M096 


TECHNOLOGY 


Motorists get a 
breath of fresh air 

Frances Barthorpe on the manufacturers 7 response 
to increasing demand for air conditioning in cars 



M otorists dread 

getting caught in a 
traffic jam with 
the sun beating 
down and no means of keeping 
cool. In such situations it is not 
only tempers that rise. As cars 
sit idling on the tarmac, the 
levels of exhaust fumes, and 
hence pollution, go up, leaving 
motorists with the choice of 
winding the window down and 
breathing in pollution, or 
sweltering with the window 
shat. 

With temperatures predicted, 
to rise by between l«C and 3.S°C 
daring the 2 1 st century, things 
are unlikely to improve. No 
wonder demand for air 
conditioning in cars Is 
increasing. 

A recent survey by DRI/ 
McGraw-Hill for Ford revealed 
nearly that a third of all UK 
respondents would consider air 
conditioning when choosing 
their next vehicle. The figure 
for German respondents was 
nearer 60 per cent. 

By the end of the century, it is 
predicted, nearly half of new 
cars being produced each year 
in Europe - or about 7.1m cars 
- will have air conditioning, 
compared with just 3.16m in 
1994. 

Since automotive air 
conditioning was first 
introduced in North America 56 
years ago, design and 
development costs of the 
components have come down 
considerably. Mass production 
combined with the development 
of more compact, cheaper units 
for the smaller-capacity engines 
in European cars allowing air 
conditioning to be fitted in a 
much greater range of cars. 

Increased volume is a big 
factor when it comes to cutting 
costs, says Larry Campbell. 
Ford's climate control 
subsystems manager for small 
and medium-sized cars at its 
factory in Cadez. France. “Five 
or 10 years ago the air 
conditioning installation 
rate in cars was about 3 per 
cent. Now volumes are 
much higher, manufacturing 
costs are dropping.” 


Tony Jackson on The Witch Doctors, an attempt to 
make sense of the changing fashions in gurus 

Hocus focus 


Running parallel to this is a 
second theme: that management 
theory consists of an uneasy 
equilibrium between two conflict- 
ing schools, the bard and the 
soft. The first is Taylorism, 
which says production is a mas- 
ter plan for use by idiots. The 
second might be termed Toyota- 
ism, which says efficiency comes 
from liberating the minds of the 
workers. 

Because of this , the authors 
argue, management theorists 
keep sending out conflicting mes- 
sages. Companies are told to be 
“flexible" - that is. sack people - 
and to win their employees’ trust. 
They are urged to focus on qual- 
ity. and also on speed. They must 
have a vision, and they must be 
ready to change direction at a 
moment’s notice. 

On balance, the authors are 
softies. They have little time for 
re-engineering, one of the most 
reviled management innovations 
in recent years, describing it as 
an attempt “to adapt Taylorism 
to the age of the computer”. 

Besides, they say. re- 
engineering concentrates on how 
a company produces, not what. It 
can be a prescription for making 
the wrong things perfectly. 

More generally, the authors 
come across as mild sceptics: 


which, given their reading hab- 
its. is probably the key to sanity. 
Talk of upheavals in work prac- 
tices. for instance. Is largely dis- 
missed. “The most horrifying 
thing about the “future of work* 
may be just how similar it will 
be." 

Globalisation, at least in the 
old-fashioned sense, is shrugged 
off as a myth. It is simply not 
true, they say, that the same 
products can be sold anywhere. 
As for making them anywhere, 
tell that to the film studios which 
try to emulate Hollywood. 

On the stakeholder/shareholder 
debate, they point out - justly - 
that it has been somewhat over- 
taken by events. It is no longer 
true that the Japanese or Ger- 
man models of corporate control 
perform better. When it comes to 
creating high-tech industries, 
nasty old shareholder America is 
miles ahead. Conversely, looking 
at the grosser examples of board- 
room opulence in America, it 
may be that shareholder power 
has not been taken far 
enough. 

Most of this represents the 
authors’ own view of life, as 
opposed to that of the gurus. But 
there is one chapter in which the 
opening thesis is forcefully re- 
addressed. This examines the 


malign influence of management 
theory on the public sector, in 
the US and UK in particular. 

• It is easy to see why public 
servants, on both left and right, 
should embrace the gurus. Public 
service has fallen in general 
esteem, and stealing manage- 
ment’s clothes is an attempt to 
win it back. Besides, managers 
are supposed to be cost-cutters, 
and there is never enough in pub- 
lic-sector budgets to go round. 

But as the book points out, cus- 
tomers and citizens are different 
things. We may be customers of 
state-run railways and gas com- 
panies: but not when .we pay 
taxes or are conscripted into the 
army. Besides, the public sector 
is by its nature slow-moving. It 
therefore risks being landed with 
the exploded five-year-old theo- 
ries of the private sector. 

Indeed, five years is a long time 
in management. There is nothing 
deader than an old guru’s view of 
the future. But that, doubtless, is 
all part of the authors’ plan: five 
years on. look for Witch Doctors: 
The Next Generation. 

The Witch Doctors is available 
from FT Bookshop by ringing +44 
181 964 1251 or fax credit card 
details to +44 181 964 1254 (post 
and packing £1.50 m Europe) 


The heart of an air 
conditioning system is the 
compressor. Fort uses a 
“variable scroll” type which, it 
says, combines excellent noise, 
vibration and harshness 
characteristics with durability. 
According to Ford it also 
minimises the effects of air 
conditioning on fuel economy, 
and eliminates the clutch surge 
often experienced in small cars. 

Koen Devi be, responsible for 
marketing at Delphi Harrison 
Thermal Systems, says the main 
developments in the future will 
be on the compressor side. "The 
target will be smaller cars, like 
the Astra and the VW Golf. So 
the compressors will need to be 
more compact, providing better 
fuel economy, and ease of 
operation,” says Devitz. 

Canadian-based REG 
Technology is developing an 
automotive air conditioning 
compressor based on its 
patented Rand Cam rotary 
engine design. The new positive 
displacement compressor is half 
the size of the units now used 
and provides up to 20 per cent 
more cooling capacity. 

Another area of development 
will be more sophisticated 
filters, catting out dust, pollen 
and other particulates to 
improve the quality of the 
interior air. But better sensors 
are needed to achieve this. 

In July this year Warwick 
University was selected to co- 
ordinate an Eculm Europe-wide 
project, designing high- 
technology sensors to help 
monitor both the level of air 
pollution generated by vehicles 

and the air quality in the 
driver’s cabin. 

Julian Gardner from the 
university’s engineering 
department will lead the 
project, which includes Fiat; 
VDO, the German car sensor 
component company; and 
universities in Germany, 

Sweden and Switzerland. 

Warwick will be developing a 
version of its “electronic nose” 

- sensors comprising 
conducting polymers and 
semiconducting oxides. The 
ultra-low power sensors will be 


capable or using the normal car 
power supply- Fiat expects to 
have the prototype sensors 
Installed in lm cars by the end 
of the decade. 

According to Devitz. 
“multi-zoning" will also be 
appearing in to p-of-the- range 
cars within the next 10 years. 
“This will enable one side of the 
car to be kept at a temperature 
of, say. 22°C and the other side 
at 25°C," says Devitz. 

Two other developments are 
likely. The first is in the area of 
automatic temperature control. 
Today 40 per cent of 
factory-fitted air conditioning 
systems use manually adjusted 
thermostatic controls. But over 
the next few years ATC is 
‘expected to become more widely 
available. 

The second development is 
likely to be in alternative 
refrigerants. Two years ago, 
because of environmental 
concerns over the use of 
chlorofl uorocarbons (CFCs). the 
R12 refrigerant used in air 
conditioning systems was 
replaced by the more expensive 
CFC-free R134A. Although less 
harmful than R12 it has also 
been proposed that this should 
be banned by 2030. So the 
search is on for other 
alternatives. 

In July. US-based Technical 
Chemical Company launched its 
alternative to R12, Johnsen's 
Freeze 12. “U requires no 
expensive vehicle conversion 
and is much lighter and less 
costly than R12." says Larry 
Easterlin, TCC’s vice-president 
of sales and marketing. 

In the UK, Normalair-Garrett 
announced recently that it had 
devised the world’s first air 
conditioning system for trains 
using air-cycle refrigerant 
technology. This uses air as a 
refrigerant instead of chemical 
refrigerants. 

A number of studies have 
been carried out on the 
feasibility of applying similar 
technology in the automotive 
industry. 

Frances Barthorpe writes for 
Professional Engineering 


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13 


FINANCIAL TIMES FRIDAY NOVEMBER 1 1996 



nose are tense days 
for the UK’s arts 
Wmsanhip industry. 
Unless some last min- 

frntt, the Budget on November 
26 is likely to Include among its 
smallest print another £500,000 
cut in die government’s contri- 

hfcSSffc* 0 ^ Pairln e Scheme, 
which has proved such a great 
stimulant in persuading business 
to Sponsor the arts. 

Last year the grant was cut by 
£600,000, to £5m with a similar 
reduction earmarked for 1997 - 98 . 

For the Association for Busi- 
ness Sponsorship of the Arts, 
which administers the scheme, 
such a reduction would be disas- 
trous. Director Cohn Tweedy is 
contemplating closing down a 
regional office, probably Wales, 
if the funds are cut 
However, Tweedy is hopeful 
that the success of the scheme 
will cause a last minute rhtmga 
of heart by -Virginia Bottoxnley, 
the heritage secretary. 


Sponsorship/Antony Thomcroft 

The need to keep good company 


In its li years it has enconr* 
aged business to give £ 97 m to 
the arts, and last year’s re-jig- 
ging of the guidelines, designed 
to persuade companies to com- 
mit for longer and to stress 
a c c e ss to the arts, has revitalised 
the operation. , 

This year four sponsors — " 
Toshiba at the ICA; Visa with 
the London Film Festival; RJB 
Mines with the National Coal 
Mining Museum; and Mastercard 
with National Music Day - all 
attracted the new, increased, 

£75,000 top up, thantt to their 
own commitment of £150,000, or 
more, to the cause. If the grant is 
cut the substantial £75,000 incen- 
tive win probably be reduced. 

To date, arts sponsorship in 


the UK has held up well, despite 
the pressure on companies from 
arts organisations to help them 
with the partnership funds 
needed to secure Lottery money. 
When the sponsorship total for 
1995-96 is announced shortly it 
could even show a slight rise 
on the record £82m of the previ- 
ous year. 

Companies are obviously reluc- 
tant to bow to the government’s 
wishes and assume the role of 
major partnership funder of Lot- 
tery projects. 

★ 

As the changes in the Pairing 
Scheme acknowledged, the prob- 
lem with sponsors is that they 
are inclined to be short-termist 
On average they will support an 


arts company for three years at 
most and then become bored: the 
novelty, and the newsworthi- 
ness, palls. 

It does not have to be this way. 
A long term commitment can 
bring great rewards, most obvi- 
ously to the arts organisation 
bnt also to the sponsor who 
gains in pride and prestige. This 
is certainly the case with Mid- 
land ttwiiir, which has just cele- 
brated 25 years supporting the 
Proms at the Royal Opera House 
with eight cut-price perfor- 
mances of Wagner’s The Ring. 
ending tomorrow night, and 
with Shell, which is embarking 
on its 21 st year of backing the 
Shell-1£0 Music Scholarship. 

This is the most Important 


prize for budding young profes- 
sional musicians in the UK (the 
BBC Young Musician, sponsored 
by Lloyds, seeks to uncover solo- 
ists) and most of the winners 
now lead orchestral sections: five 
are prominent in the LSO itself. 
The 1997 competition is seeking 
a woodwind player and 350 
under 21s wiH get the chance of 
working with LSO professionals 
even if only one takes the 
scholarship. 

The programme costs Shell 
£130,000, and to celebrate the 
anniversary it is once again 
sponsoring the LSO’s only UK 
tour. Gum December 2, with con- 
certs under new principal con- 
ductor Sir Colin Davis in Man- 
chester. Newcastle, Glasgow and 


Aberdeen. The tour will cost 
Shell £200,000. Next year there 
win be two additional concerts 
to promote previous past schol- 
arship winners, which will add 
another £150,000. Fortunately, 
Shell seems eternally wedded to 
the scholarship, which has 
attracted 5,000 young musicians 
since 1976. 

Over the last week young peo- 
ple have been able to make up 
their minds about Covent Gar- 
den’s newfish) Ring for £15 as 
against the £132 mice of a ticket 
for a good front seat - tinmire to 
the Midland* Proms. Over the 25 
years of the sponsorship, the 
Midland has pumped £3. 5m into 
the Opera House Proms, creating 
the audience of the future. 


Research suggests that 37 per 
cent of those attending have 
never visited the ROH before and 
just over a half are under 30. 

* 

Arts companies should never 
despair: there are always new 
companies discovering the 
attractions of sponsorship, or 
extending their commitments. 

Selfridges has got involved for 
the first time, pledging £50,000 
towards the Serpentine Gallery 
over the next three years, while 
planning initiatives in other arts 
sectors. As is so often the case, 
the arrival of a new managing 
director. Vittorio Radice from 
community conscious Habitat, 

sealed the deal. 

In return for backing shows at 
the Serpentine, including the 
recent Richard Wilson exhibi- 
tion, and the first when the Ser- 
pentine re-opens late next year 
after its facelift, he wants to 
bring more art Into the store. 
The Serpentine will advise on 
this, and cm window displays. 




h 


Theatre /David Benedict 

‘Buried Treasure* 


“It 5 a pity the flames didn’t claim 
you. Still, there’s always helL ” 

B urning down a Church 
may not appear on the 
official list of the Seven 
Deadly Sins but as tor 
as Robert, the local vicar is con- 
cerned, it probably weighs in at 
Number 8. In David Ashton's 
whimsical Buried Treasure, the 
people of a remote Scottish sea- 
side town have narrow views 
long memories -and when long- 
lost son and former arsonist, 
Frank McCoig, returns, they 
aren’t about to forgive and forget. 

Not that he appears to give a 
toss. In addition to riling the 
townsfolk and r.biria, his former 
lover, by his mere presence, he’s 
intent on taking up where he left 
off, running a disco in the local' 
dance-halL 

The promise of Saturday night 
shenanigans isn’t exactly manna 
from heaven to the outraged 
townsfolk, nor their vicar, partic- 
ularly since, off-duty, he’s Lin- 
da's husband. In the midst of thka 
collision between past and pres- 
ent, Frank remains undeterred. 
Like Charlie in Chris Hannan’s 
excellent Shining Souls at the 
Traverse earlier this year, he's 
looking for his soul. 

Passions may be r unning hi g h , 
but Ashton pursues Ills goal 
beneath a light, comic surface. 
The play feels more Uke a Short 
story, the' predominantly comic 
mood effortlessly suggested 
thrg^h_pbli£ue, picturesque 
characterisation. The tone is well 
set up In the slightly drifting first 
half, with Collette O’Neil in fine 
fettle as the feisty, marvellously 
suggestive Sadie, an elderly 
woman who has set up home in 


Frank’s abandoned hall , dispens- 
ing succour and sharp retorts as 
the fancy takes her. Problems set 
in with the second half as events 
take over and the plotting begins 
to run ahead of the writing. 

The disco turns Into a disas ter 
and revelations come thick and 
fast. We’re unprepared for the 
sudden pitch into melodrama as 
lust and sins of the father are 
laid bare and loose ends are tied 
up in a rush of a c t iv i ty . Ashton 
abandons his sardonic tone and 
opts instead for full-throttle con- 
frontation. Robert loses his rag 
and, in an ecstasy of loathing, 
reveals what really happened the 
night Frank set the church on 
fire. But Frank’s immediate 
understanding of his recaptured 
memories and their Implication 
is. too swift and simplistic. 

Robin Lefevre's Bush Theatre 
production boasts neat perfor- 
mances. Alexander Morton lends 
feckless Frank a shabby but 
oddly touching quality Jenni- 
fer Black copes well as the under- 
written Linda, a woman forced to 
make the best of a bad job but 
stxmg into life by the reappear- 
ance of her childhood sweetheart. 
Standing on the pier of Tanya 
McCullin’s atmospheric set, they 
reminisce about illicit activities a 
room away from an everprffient_ 
father. “Thank God he loved his 
Mantovani records." Even they 
cannot redeem the final scene of 
romantic hope against adversity 
but at its best the play, however 
sdjgbt^Show^ .Ashton unafraid to . 
raid with appealing and unfash- 
ionable warmth.. 


Lyric Studio, Hammersmith 
until November 16 (0181-741 
2311). 

r 



Ata* mi*- 


Collette O’Neil. Alexander Morton and Anthony J O’Donnell in ‘Buried Treasure’ 


Linehan brings hope and joy to ‘Happy Days’ 


I n Samuel Beckett’s Happy 
Days, drama is stripped to 
its sheerest essence. We 
observe the gradual extinc- 
tion of a body, of a mind; of 
language. 

We also observe the remnants 
of a -marriage, a marriage in 
which we hardly know which 
counts for more: the impenetra- 
ble and separate solitudes of 
woman and Tnan, or their mutual 
dependence. Do they need each 
other, or to be quit of each other? 
Are they happy to live, or do they 
long for death? 

The play shows contradictory 
and ambiguous impulses. Bleak 
though this is, Happy Days is 
life-enhancing; and, by the way, 
deeply funny. 

There is no play of the twenti- 


eth century ! find more marvel- 
lous. During the 1990s, I have 
seen it in three different produc- 
tions; I love it mare each time; 
and fins production - directed by 
Karel Reisz; featuring Rosaleen 
T Jnehan as Winnie; reaching the 
Ahneida Theatre last night from 
Dublin’s Gate Theatre (it was 
also shown in New York in 
August) - is the best I have seen. 
It makes the play seem brighter 
and larger than ever. 

Winnie, middle-aged, Is buried, 
in Part One, up to her waist in 
scorched earth, under a burning 
sun; in Fart Two, up to her neck. 
Willie, who seldom appears, 
turns out to be older, and bald- 
pated. The ageing nipple, wed to 
the aged penis? Certainly the 
way the play shows that the sex- 


ual instinct is among the last to 
vanish (in Willie) is among its 
most marvellous jokes. Bells 
pierce the air now and then; and 
we know that, on one level, Win- 
nie an d Willie are ending their 
days in some kind of institution. 

But Willie seldom gives voice; 
whereas Winnie talks, talks, 
talks. His he arin g is toiling; so is 
his ability to communicate; so is 
her memory, and she knows the 
day approaches when words fall 
too. “Why then just close the 
eyes - and wait far the day to 
come - the happy day to come 
when flesh melts at so many 
degrees and the night of the 
moon has so many hundred 
hours." And it Is in her great 
monologues' that the human 
spirit becomes most luminous. 


Much of the time we know she 
is merely looking on the bright 
side (“That is what I find so mar- 
vellous") where there is none; 
but not always. 

For her very resurgence is 
brightness enough, and so too is 
her preparedness for death. Yet 
Beckett also injects the play - 
how much I have never under- 
stood until this production - 
with moments of bitterness, 
doubt, alarm, and scorn. When 
Willie makes his final appear- 
ance, crawling up the mound 
towards her, she is dismissive, 
shocked, tender, curious. “Is it 
me you're after ... or Is it 
something else?” Beside her, 
indeed, is a revolver. 

There is much more plot to this 
play, though buried deep, than I 


had realised before Reiss’s tre- 
mendous production. 

Tim Hatley, designing, h a s 
turned Winnie’s scorched mound 
into an earthy promontory, the 
result is thrilling. And T Jnehan, 
even though one may question 
individual decisions about line- 
readings, carries the evening. 

A superb account of a supreme 
play. Comedy and pathos, exis- 
tential grandeur and satiric petti- 
ness, hope and despair, pour from 
her in a steady stream, perfectly 
phrased. 

Alastair Macaulay 


Almeida Theatre, London Nl, 
until November 9 (0171-359 
4404). 


Concerts /Andrew Clark 

Orchestral 

contrasts 


O ne of the rewards of 
living in London is the 
chance to compare, 
week after week, the 
qualities and playing styles of all 
the foreign orchestras who seem 
to queue up to play here. 

Such an opportunity arose on 
consecutive evenings this week. 
The two orchestras were the Dan- 
ish National Radio Symphony 
and the Czech Philharmonic - 
neither a huge box-office draw on 
their own. but each with a tradi- 
tion of championing their 
countrymen's music on British 
soiL The attraction, therefore, 
was not so much the Beethoven 
concertos which lay at the heart 
of each programme - fascinating 
as these performances were, with 
highly esteemed and idiosyn- 
cratic soloists - but the music of 
their own national schools. 

And . no national school has 
been better preserved than the 
Czechs’. Notwithstanding the 
long-r unning problems which 
have left it without a chief con- 
ductor in its centenary year, the 
Czech Philharmonic sounded in 
excellent shape on Tuesday night 
at the Royal Festival Hall Its per- 
formances of Dvorak's Seventh 
Symphony and Jaxu&Cek’s Taras 
Bulba had all the qualities that 
mak e a Czech orchestra playing 
Czech music such a pleasure. 

It is not just the unnnstakeably 
Bohemian character of each sec- 
tion, the dancing violins, the 
warmth of the lower strings, the 
euphonious glow of the horns, 
the Idiomatic songfulness of the 
woodwinds; what distinguishes 
this orchestra Is the way all these 
qualities find their context in a 
harmonious whole. 

This was particularly true of 
the DvofAk, which opened the 
programme. There was nothing 
obtrusive in any of the detail, 
and yet each phrase and para- 
graph yielded a defining charac- 
teristic: the lyrical fluency with 
which Antes and strings 
announced the opening move- 
ment’s second theme, the unman - 
nered voicing of instrumental 
parts in the Poco adagio, the 
sense of proportion in the 
scherzo, the cheeky little ritar- 
dandos in the finale, giving a 
spring to the phrasing which 
only a native of Prague could get 
away with. That none of this 
appeared to have been superim- 
posed by the conductor is a trib- 
ute to Libor Pegek and his under- 
standing of the orchestra's (and 
the music’s) innate qualities. 

Apart from some charmless 
phrasing at the start of the slow 
movement, Pefiek’s reading had 


ideal warmth and symphonic 
thrust, and his JanACek was 
hugely imposing. With its com- 
plex rhythms and tempo changes, 
Taras Bulba is hard to pull off: 
this performance combined seam- 
lessness, spareness and majesty. 
The encore was Oskar Nedbal's 
Valse triste. a Bohemian bonbon 
which Pegek treated with Beecha- 
mesque flair. 

At the Barbican the previous 
evening, the Danish National 
Radio Symphony Orchestra did 
not have the benefit of a Danish 
conductor - nor, judging by its 
performances of symphonies by 
Bent Sorensen (b.1958) and Niel- 
sen. does it have a distinctive 
personality. Its music director, 
Ulf Schirmer, unfolded Soren- 
sen's Symphony with German 
efficiency and brought a calcu- 
lated logic to the second move- 
ment fugues of Nielsen’s Fifth. 
But the playing was no more 
than competent. 

T his is a sad indictment of 
an orchestra which did 
so much to establish 
Nielsen's name in this 
country before the CD age 
(through its pioneering perfor- 
mance of the Fifth Symphony at 
the 1950 Edinburgh Festival and 
a Nielsen cycle in London in the 
late 1960s). At Monday's concert, 
the Fifth sounded depress ingly 
matter-of-fact. Schirmer ironed 
out all sense of mystery from the 
first movement - noisy air-condi- 
tioning didn't help - and turned 
the great crescendo into a parody 
of expressionist battle music. Nor 
was there much joyous impulse 
in the second movement. 

The DNRSO can take credit for 
bringing a work by a living com- 
poser, but Sorensen’s 22-minute 
Symphony turned out to be nei- 
ther Scandinavian nor properly 
symphonic. After a few pages of 
Sibelian desolation, it emerged as 
a medley of styles, filtered 
through an interminable wash of 
glissandos. The Danes accompan- 
ied Joshua Bell in a gorgeous- 
sounding account of the Beeth- 
oven Violin Concerto - so gor- 
geous, in fact, that the music lost 
all momentum under the weight 
of Bell’s poetic self-absorption. 
The Czechs provided solid sup- 
port for Mikhail Pletnev In the 
First Plano Concerto: no rhetoric, 
no showmanship, but Insouciant 
control, crystalline evenness and 
a personal stamp on every 
phrase. 

The Czech Philharmonic's sec- 
ond Festival Hall concert, organ- 
ised by the Royal Philharmonic 
Society, is tomorrow. 


IKTERNATICWAL I 





m AMSTERDAM 


CONCERT 
Concartgebouw Tel: 
31-20-6718345 . 

• Nedertands Philharmomscn 
Orkest. with conductor Hartmut 

Haenehen and pianist Markus 
Groh perform works by R. Strauss 
and ^Schumann; 8.15pm; Nov 
3, 4, 5 


■urn Tel: 

hschild: exhibition 
s " of Chateau 
ild, with designs 
>re, Alechinsky, 
JJcasso, Warhol, 

2 and Bacon; from 


Monteverdi. 
Stephen StubbSi 

ie Tragico media & 

no and the Vocaal 
nets Include John 


Mark Ainsley, Juanita Lascarro 
and Brigitte Baileys; 8pm; Nov 
4 


■ BARCELONA 

EXHIBITION 

Museu Nadonal d’Art de 
Catalunya Tel: 34-3-4237199 
• The Splendour of Baroque 
Painting: exhibition featuring 56 
works from the museum’s 
collection, allowing the public to 
follow the evolution of the 
different styles of the-16th, 17th 
and 18th centuries, from 
Mannerism to Rococo. Artists 
represented Include Tintoretto. S 
Greco, Rubens, Tiepolo, 
Fragonard, Rlbalta, Ribera, 
V elte quee. Zurbardn and 
VH ado mat; to Nov 15 


■ BASEL 


Deutsche Oper Berlin Tel: 
49-30-3438401 

• Beatrice dl Tends: by Bellini. 
Conducted by Marcello Vlotti, 
performed by the Deutsche Oper 
Berlin. Soloists include Vladimir 
Chernov, Lucia AJiberti and 
Octavio Arevalo; 6.30pm; Nov 3 


■ BILBAO 

EXHIBITION 

Museo de Bellas Aries Tel: 
34-4-4419536 
• Anglada Camarasa. Sus 
ambfentes: exhibition featuring 
450 works by Anglada Camarasa, 
the majority of which come from 
the artist's collection; to Nov 3 


■ BRUSSELS 

EXHIBITION 

Mus6e d’Art Modems Tel: 
32-2-5083211 


ART & ANTIQUE FAIR . • Het Legaat Irene 

Messe Basel Tel: 41^61-6862020 Scutenajre-Hamoir. Van Magritte 
• TEFAF Basel 96: 125 dealers tot Magritte: exhibition of the 
from 12 countries are represented entire collection of the late Irene 
at the second edition of this Hamoir-Seutenaire. The collection, 

international art and antique fair which was bequeated to the 
which features paintings, museum in 1994, features 292 

drawings, prints, books and other works. by Surrealist artists such as 
art objects from the classical MariAn, Mesens, Eemans, 

antiouitv to the present; to Nov 3 Graverol, Simon and Magritte. The 
^ latter artist is represented by 107 

_ at works, including 23 paintings; to 

■ BERLIN Dec 22 


haus-Tek 49-30-203090 

funk-Sinfonleorchester 
1th conductor Lawrence 

ncl pianist Elena 
owa perform works by 

«■ - Cn acral" Soffl: 


NOV 3 

OPERA 


■ COLOGNE 

CONCERT 

KBIner Philharmonic Tel: 
.49-221-2040820 
• Orchestra of St John's Smith 
Square: with conductor John 
Lubbock and pianist Andfe Watts 


perform works by Prokofiev, 
Beethoven, Mendelssohn and 
Haydn; 8pm; Nov 4 


■ DUBLIN 

EXHIBITION 

National Gallery of Ireland Tel: 
353-1-6615133 

• William J. Leech (1881-1968), 
an Irish painter abroad: a 
retrospective exhibition of works 
by William J. Leech. It brings 
together over 100 works and 
explores the artist’s drawings, . 
watercolours and paintings, the 
majority of which are in private 
hands and Tittle known; to Dec 1 5 


■ LONDON 

CONCERT 
Barbican Hall Tel: 

44-171-6384141 

• Koninkfijk Concertgebouw 
Orkest with conductor John Eliot 
Gardiner and mezzo-soprano 
Anne Sofie von Otter perform 
works by Weber, Berlioz and 
Schubert; 3.30pm; Nov 3 
Royal Festival Hall Tel: - 
44-171-9604242 

• Ptiilharmonia Orchestra: with 
conductor Leonard Slatkin, 
mezzosoprano Catherine 
Wyn-Rogers, tenor Justin 
Lavender, bass Anthony 
Michaeis-Moore and the 
Philhanmonia Chorus perform 
Elgar's The Dream of Gerontius; 
7.30pm; Nov 3 

DANCE 

Peacock Theatre Tel: 
44-171-314-8800 

• Perfumes de Tango: this show 
choreographed by Miguel Angel 


Zotto and Milena Plebs and 
performed by the tango company 
Tango por Dos opens the newly 
refurbished Peacock Theatre 
(formerly the Royalty Theatre), 
Sadler’s Wells’ temporary home; 
8pm, Sat also 3pm; to Nov 2 

OPERA 

London Coliseum Tel: 
44-171-8360111 

• Rigoletto: by Verdi. Conducted 
by Noel Davies, performed by the 
English National Opera. Soloists 
Include Peter Sid horn, Janice 
Watson and Jean Rigby; 7.30pm; 
Nov 2, 5 

Royal Opera House - Covent 
Garden Tel: 44-171-2129234 

• Gfitterdammerung: by Wagner. 
Conducted by Bernard Haitink 
and performed by the Royal 
Opera. Soloists Include VMan 
Tierney' Ann Murray and Gillian 
Webster; 4pm; Nov 2 


■ MUNICH 

OPERA 

Nations (theater Tel: 
49-89-21851920 
• Der fltegende Hollander: by 
Wagner. Conducted by Peter 
Schneider, performed by the 
Bayerische Staatsoper. Soloists 
include Luana DeVol, Marita 
Knobel, Jaakko Ryhtinen and 
Peter Stralca; 7.30pm; Nov 3 


■ NEW YORK 

CONCERT 
Alice Tufly HaO Tel: 
1-212-875-5050 
• A meric an Symphony 
Orchestra: with conductor Leon 
Botstein, pianist Stephen 


Montague and the Yale Glee Club 
perform works by Ives, Ruggles 
and Cowell; 8pm; Nov 2 

OPERA 

Metropolitan Opera House Tel: 
1-212-362-6000 
• La Traviata: by Verdi. 
Conducted by Maurizlo Barbacinl. 
performed by the Metropolitan 
Opera. Soloists include Arteta, 
Giordani and Frontali; 1 .30pm; 
Nov 2, 5 (8pm) 


■ PARIS 

CONCERT 

Theatre des Champs-BysAes 
Tel: 33-1 49 52 50 50 
• Acte and Galatea: by Handel. 
Concert performance, conducted 
by William Christie and performed 
by Les Arts FJorissants. Soloists 
include Sophie Dan ©man, Paul 
Agnew and Alan Ewing; 7.30pm; 
Nov 5 


■ VIENNA 

CONCERT 

Konzerthaus Tel: 43-1-7121211 
• David AJ berm an and Rolf Hind: 
the violinist and pianist perform 
works by Reich, Dun, Scelsi and 
Hosokawa. Part of the festival 
Wien Modem; 7.30pm; Nov 3 


Listing compiled and supplied 
by ArtBase The International 
Arts Databasa, Amsterdam, The 
Netherlands. Copyright 1996. Ail 
rights reserved. Tet 31 20 664 
6441. E-mail: artba3e@pi.net 


WORLD SERVICE 

BBC for Europe can be 
received In western 
Europe on medium wave 
646 kHZ (463m) 


EUROPEAN 

CABLE 

AND SATELLITE 
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(Central European Time) 

MONDAY TO FRIDAY 
NBC/Super Channel: 

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FT Business Morning 

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until 15.00 of European 
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Tonight 




14 


FINANCIAL TIMES FRI DAY NOVEMBER I 1996 


COMMENT & ANALYSIS 


Philip Stephens 

Victory for vision 

For all his failings, Bill Clinton offers US voters a better 
alternative to the atomised society of die new right 



When Bill Clinton raises his 
glass next week, the first 
toast will be to Newt Ging- 
rich: the second to Alan 
Greenspan. Never mind that 
they are Republicans. That 
is the secret of Mr Clinton's 
success. The president takes 
help from wherever it 
comes. From this, many 
have concluded his impend- 
ing re-election hardly mat- 
ters. They are mistaken. 

Mr Clinton will be the 
first Democrat to win two 
consecutive terms since 
Franklin Roosevelt took a 
long lease on the White 
House In 1933. So what, the 
cynics say. His politics are 
not radically different from 
those of Bob Dole. The story 
or how Mr Clinton has 
filched conservative policies 
I to reinvent his presidency 
has been written a thousand 
times. 

This version of events is 
both true and misleading. 
Hard though it may be to 
celebrate his personal suc- 
cess, Mr Clinton's victory 
will count. His enemies are 
not alone in their doubts 
about the president’s char- 
acter and the ethics of his 
administration. He is as 
Hawed as he is engaging. 
But it is an error to under- 
estimate the voters’ repudia- 
tion of the Republican alter- 
native. This time Mr Clin- 
ton has come out an top in 
the battle of ideas. 

In an era of economic 
insecurity and social frac- 
ture, moderation has tri- 
umphed over extremism, 
morality over the moral 
majority. The electorate is 
suspicious of the state. But 
on balance it has concluded 
that the centrifugal forces 
in American society 
demand a counterweight. 
Big government no, but 
enabling government yes. 

Mr Dole has played a 
walk-on part in Mr Clinton's 
victory. His fumbling cam- 
paign. his ties to the 
tobacco industry (who else 
still doubts nicotine is 
addictive?! and his U-turns 
on tax and affirmative 
action have exploded the 


myth that the former Sen- 
ate leader was the last hon- 
est man in Washington. His 
choice of Jack Kemp as run- 
ning mate was an Ill-Judged 
reminder of the price the 
nation has paid in increas- 
ing budget deficits Tor Ron- 
ald Reagan's tax cuts. The 
voters have signalled they 
will not fall for the same 
trick twice. 

But the real losers have 
been the Republican revolu- 
tionaries who swept the 
Congress In 1991. Mr Ging- 
rich was their messioh. 
Remember Newt? A year or 
so ago. the speaker of the 
House of Representatives 
promised to remake the 
political landscape. An 
immodest . man. this high 
priest of market economics 
and moral authoritarianism 
told us he would “shift the 
planet". Admirers or his 10- 
point Contract with Amer- 
ica spoke as if Moses had 
revisited Mount Sinai. 

The absurdity- of Mr Ging- 
rich gave Mr Clinton the 
space he needed to recast 
the politics of the Demo- 
cratic party after two disas- 
trous years. This president 
takes his chances. He made 
tough choices (some good: 
some, as on welfare reform, 
bad). He abandoned his par- 
ty's liberals and collabo- 
rated with a Republican 
Congress. The White House 
strategists called it “tri an- 
gulation". It worked. 

The president had 
luck on his side. 
He entered the 
White House at 
just the right 
moment in the 
economic cycle. 
But he also had 
Mr Greenspan 


Mr Gingrich thought he 
could close down the gov- 
ernment. Instead. Mr Clin- 
ton closed down the Repub- 
lican revolution. Now. the 
only people prepared to give 

the Speaker television air- 
time are the Democrats. He 
is their best advertisement. 
If they win back the House 
of Representatives next 
week (a 50:50 bet). Mr Ging- 
rich Is destined for perma- 
nent obscurity. 

For all the tacking. Mr 
Clinton has stuck with his 
party's core values. Except 
on welfare reform, he has 
appealed to tolerance and 
decency against the far 
right’s scapegoating of 
immigrants and minorities. 
He cut taxes for the poor 
through the eamed-income 
tax credit. He will win Calif- 
ornia in spite of his refusal 
to back that state's assault 
on the weak. His ambitions 
plans for healthcare reform 
fell victim to the (errone- 
ous) charge that It would 
nationalise medicine. But he 
has kept faith with the 
analysis that America needs 
to widen access to health- 
care. 

What really counts, 
though, is that Mr Clinton 
has won the argument for 
affirmative government. 
The alternative is an atom- 
ised society. In his favourite 
phrase, the task of politi- 
cians is to give people tools 
to make the most of their 
lives. Government can serve 
the people. It may seem 
obvious, but this will now 
become the leitmotif for par- 
ties of the centre-left across 
the industrialised world. 

For his second achieve- 
ment. Mr Clinton's debt is 
to Mr Greenspan, the septu- 
agenarian chairman of the 
Federal Reserve. The voters 
have been prepared to listen 
to the president, to ignore 
his flaws because of the per- 
formance of the economy. 
His administration has seen 
four years of uninterrupted 
growth, subdued Inflation, 
the creation of more than 
10m new jobs and the 
lowest budget deficit for 


more than a decade. 

The president had luck on 
his side. He entered the 
White House at just the 
right moment is the eco- 
nomic cycle. But he also 
had Mr Greenspan. It was 
the Fed chairman who per- 
suaded Mr Clinton that the 
economic reward of a lower 
budget deficit would out- 
weigh the political cost of 
tax increases for the middle 
classes. The president’s 
shrewd faith in Mr Green- 
span has been rewarded 
with an interest rate policy 
skilfully calibrated to sus- 
tain rising output 

Mr Clinton's success has 
wider significance. It defies 
the reflex that says that the 
centre-left is irredeemably 
Irresponsible when it comes 
to economic management. 
In tackling the deficit, a 
Democrat president has 
made a start on clearing up 
a mess left by Republicans. 
And he bas reaped the 
rewards. Britain's Tony 
Blair might take note. 

None of this provides 
guarantees for the next four 
years. History tells us that 
US presidents are usually 
less effective in their second 
terms. Mr Clinton has yet to 
provide an honest explana- 
tion of the ethical lapses of 
his administration. The 
pressures here are likely to 
get stronger rather than 
weaker. He has identified ' 
the big challenges facing 
America, but he bas come 
up with some pretty small 
answers. A $500 per child 
tax credit, tougher gun con- t 
trol, and more rigorous 
standards in schools are 
worthwhile ambitions. They 
are hardly a substitute for 
the boldness and risk-taking 
which stood behind Roose- 
velt's greatness. 

It is here we come to the 
central paradox behind the 
Clinton presidency. He is 
not an uplifting nor a par- 
ticularly honest politician. 
But he is a powerful shield 
against the truly selfish 
society. The battles he has 
won are far more important 
than the man, 


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-LETTERS TO TH E EDIT OR- 

. yNUmber.-dn©,S Bridge, London SEI 9HL 

Wit are keen to encourage lattcrefrom' readosaroundthe world. Letters may be iT* h^w /wwwJTajm 

to W). eStSsxdItor#ft.com Published letters are also available ontbe FT ^.^,!^ //wwV ' Fr ' COin 
: . Translation may be available for letters written in the main international 


Trade pact is committed to liberalisation 


From Mr Rubens Antonio 
Barbosa . 

Sir. I read with interest 
your editorial entitled 
“Trade blocs" (October 24), 
as well as the articles related 
to Mercosul that have 
appeared in your newspaper 
this week. 

As Brazil is currently hold- 
ing the pro tempore presi- 
dency of Mercosul, 1 feel it 
would be appropriate to 
point out that the editorial 
was too hasty In accepting 
the conclusions of an unoffi- 
cial internal study written 
by a World Bank economist. 
This study contains inaccu- 
rate information and statis- 
tics dating from 1994, which 
apparently question Merco- 


sul 's real benefits for its 
member countries and exter- 
nal trading partners and 
seems to imply a danger to 
trade liberalisation, not tak- 
ing into account that tha 
customs union came into 
being only in January 1995 
following a transition period. 

It is puzzling to speak of 
economic inefficiencies 
within Mercosul when 
exports of a wide range of 
highly competitive goods 
from Brazil and partners 
have restricted access to 
developed areas where trade 
barriers are raised in order 
to protect inefficient indus- 
tries. 

It is altogether incorrect to 
suggest the existence of high 


tariffs or barriers to com- 
merce with non-member 
countries when the average 
Mercosul common external 
tariff has been substa n tially 
reduced in the past five 
years qrifi is currently at ll.l 
per cent, equal to Chile’s. 

It Is also diffi cult to accept 
trade diversion as a signifi- 
cant result of Mercosul when 
trade with non-member 
countries has grown 163 per 
cent in the past five years. 
This can only demonstrate 
Mercosul 's commitment to 
trade liberalisation and the 
tremendous benefits reaped 
by all our partners around 
the world. 

In the discussion of trade 
and regionalism, the real 


issue is liberalisation of 
trade. Mercosul is a success 
story in open regionalism. 
Brazil and our partners in 
Mercosul participate actively 
in the Committee of 
Regional Trade Agreements 
of the World Trade Organisa- 
tion. What should be expec- 
ted is th e compliance of all 
regional trade agreements 
(including, not least, the EU 
and North American Free 
Trade Agreement! to the 
principles and disciplines of 
multilateral trade. 

Rubens Antonio Barbosa, 
ambassador, 

Brazilian Embassy, 

32 Green Street, 

London W1Y 4AT, UK 


Right price for Heathrow slots 


From Mr Gideon Nellen. 

Sir. Mr Richard Botwood, 
the director-general of the 
Chartered Institute of Trans- 
port (Letters, October 30), 
urges the regulators to con- 
sider ways In which Heath- 
row's limited number of 
slots can be used for Heath- 
row's advantage. 

Surely the question the 
government should be ask- 
ing is how can. Heathrow's 
limited number of slots he 
used for the advantage of 
Heathrow and the country 


From Prof Val Somonis. 

Sir, Matthew Kaminski's 
“Lith uania 's old heroes look 
for new glory" (October 18) 
correctly assesses the cur- 
rent situation in that coun- 
try but leaves something to 
be desired in understanding 
the past and future Lithua- 
nian policies. 

While there were some 
populist streaks in some 
Lithuanian non-communist 
parties' pre-election rhetoric 
(how else can you win elec- 
tion in the sovietised soci- 
ety?), the record of Lithua- 
nian conservatives and other 
non-communists speaks far 
itself. Extending the pre-war 
tradition of independence of 
fiscal responsibility, Lithua- 
nia recorded budget sur- 
pluses in 1991-1992 which by 
then were almost extinct 
elsewhere. Also, it carried 
out a speedy and radical 
Czech-style, voucher-based 


as a whole while causing the 
least environmental damage 
to London. 

If this were the test, then 
the government would 
impose an environmental 
cap on the number of slots 
available at Heathrow at no 
more than. 5 per cent above 
the present figure and 
ensure thaf slots or landing 
charges were priced at mar- 
ket clearing levels. In this 
way Heathrow’s pre-emi- 
nence in Europe would be 
secured, London’s quality of 


privatisation and property 
restitution. 

True. Lithuania was 
slower to introduce the litas, 
the permanent national cur- 
rency, partly due to the mis- 
guided influence of the Inter- 
national Monetary Fund, 
which argued fear the reten- 
tion of the rouble zone as the 
optimal currency area. The 
new government is not plan- 
ning to devalue the litas; it 
talks rather about sustaining 
the exchange rate. 

The currency board intro- 
duced by the Lithuanian ex- 
communists la somewhat of 
an inflation-sustaining insti- 
tution under the conditions 
of productivity differentials 
in a dual (foreign versus 
domestic sector) post-Soviet 
economy, as it tries to 
enhance its exports. A theo- 
retical case for this assertion 
is now supported, for exam- 
ple, by the comparative 


life would be rescued from 
further deterioration caused 
by Heathrow and the nation 
(rather t han the airlines and 
BAA) would benefit from the 
huge additional revenue a 
market pricing regime would 
generate - estimated 
recently by The Economist 
at £500m ($8 15m) per annum. 

Gideon Nellen, 

Nellen & Co, solicitors, 

19 Albemarle Street, 

London WlX 3 HA. 

UK 


infla tion performance of 
Estonia and Lithuania on 
one hand and Latvia on the 
other. 

Therefore, an orderly 
return to responsible mone- 
tary policies under the clas- 
sical central bank institu- 
tion, planned by the new 
government, will not only 
help inflation-fighting. It will 
also help Lithuanians 
acquire macroeconomic pol- 
icy skills which in turn will 
speed up reforms. 

In sum, the non-commu- 
nist victory will only make 
Lithuania more attractive as 
a place in which to invest 

Val Samonis, 
professor of east-west 
business and transition 
economics, 

University of Toronto, 

Suite 14335, 

130 St George Street 
Toronto, Canada M5S 1A5 


The living is 
not made 
any easier 

From Mrs Lyn Glanz. 

Sir, Richard Donkin shows 
considerable naivety in ask- 
ing “Now that we have a 
Channel tunnel is it really so 
different living in Brussels 
as opposed to Edinburgh?" 
(Recruitment. October 25) . 
Greater accessibility to and 
from continental Europe has 
little to do with the daily 
costs of expatriate life. 

Such costs include vastly 
Increased telephone and 
travel bills and paying a pre- 
mium for goods and services / 
due to a lack of local know- 
ledge and language. These, 
however, can be dwarfed by 
hidden costs arising from, 
for instance, the reduced 
availability of spouse 
employment and additional 
costs for the care for elderly 
relatives left at home. 

Experienced expatriates 
know the costs of moving 
abroad cannot be measured 
in simple financial terms 
and that each posting will 
pose differing challenges 
which are not necessarily 
affected by proximity to 
their home country. 

Living overseas can signif- 
icantly alter attitudes. 1 sug- 
gest Richard Donkin's views 
might be different had he 
been writing his article as an 
expatriate in Brussels. 

Lyn Glanz, 

C-N.A- Looslaan 40, 

3054 BR Rotterdam, 

The Netherlands 


Lithuania attractive place to invest 


Europa - Paul De Grauwe 

The sorrow of Belgium 


Complacent and 
unaccountable, 
the state faces 
a crisis of 
public confidence 

Belgium 
traditionally 
lacked an 
image. Coun- 
tries such as 
the Nether- 
lands, Switzer- 
land, Den- 
mark, France 
and Germany evoke pictures 
that are easily recognised 'by 
outsiders. Not so with Bel- 
gium, where bourgeois vir- 
tues have stood in the way 
of strong images. 

This Is changing quickly. 
Belgium is gaining a reputa- 
tion for corrupt politicians 
and the incompetence of its 
judiciary. 

When it emerged in the 
summer that several girls 
had been kidnapped and 
some murdered, some magis- 
trates refused to start an 
Investigation; others left for 
prolonged holidays. Crucial 
information that could have 
led to the arrest of the perpe- 
trators was not used or was 
kept secret from other inves- 
tigating agencies. 

The murderer, who had 
been convicted of child 
abuse, had been freed in 1992 
after only three years in jail 
and immediately resumed 
his macabre activities. Last 
month, a popular magistrate 
who uncovered the paedo- 
phile ring was taken off the 
case by the supreme court, 
increasing suspicions of a 
cover-up. 

All these horror stories 
have accumulated over the 
past few weeks, leading to 
massive protests which cul- 
minated in a march through 
Brussels by more than 
300,000 citizens. 

The popular protest has 
spread beyond the case of 
the missing and murdered 
children to become an 
expression of general discon- 
tent about Belgian state 
institutions. The perception 


has grown that corruption, 
incompetence and ineptitude 
are the organising principles 
of the political system, the 
administration and the judi- 
ciary. The Belgian state is 
seen as failing to provide 
essential public services 
such as law and order and 
protection for its citizens. 

How could this happen in 
the most bourgeois country 
in Europe? The answer can 
be summarised thus: compla- 
cency and lack of account- 
ability. 

Mr Jean-Luc Debaene, the 
prime minister, exemplifies 
Belgian complacency. For 
years he has told journalists 
he will not attempt to solve 
problems that cannot be 
proved to exist. The judi- 
ciary was one of these “non- 
problems”. 

This attitude also explains 
why Belgium's government 
debt is the highest in the 
European Union. For years, 
the problem was ignored. 
One minister once declared 
that, since the debt had 
come about automatically, it 
would disappear automati- 
cally. No need to worry. 

Just as complacency 
explains the inaction of suc- 
cessive governments, so lack 
of accountability explains 
the disastrous failings of the 
judiciary. The separation of 


powers between the judi- 
ciary, the executive and the 
legislative is a great idea. 
After the absolutism of 
medieval kings and popes, it 
certainly helped make jus- 
tice fairer. 

It has, however, also made 
it possible to develop a judi- 
cial system that is com- 
pletely unaccountable. 
Unchecked by outside con- 
trol, judges spend more time 
fighting each other than 
administering justice. Any 
mention of supervision is 
howled down as an infring e 
meat of the sacred principle 
of the separation of powers. 

But pressure to reform the 
judiciary has been mounting 
after the recent disclosures 
of its incompetence. High on 
the list of proposed reforms 
are plans to reduce the 
excessive political influence 
in the appointment and the 
promotion of judges. This is 
certainly overdue. 

It will not suffice, how- 
ever. if the bills introduced 
in parliament are passed, 
judges will have to pass an 
exam in order to be hired or 
promoted. But if. in the 
name of the separation of 
powers, these judges con- 
tinue to be unaccountable, 
little will have been 
achieved. A procedure must 
be developed to evaluate 


their performance in admin- 
istering justice. 

The challenge is to 
develop procedures that 
make the Judiciary account- 
able to the public without 
infringing on its Indepen- 
dence. This may sound 
impossible; yet it can be 
done, as the experience of 
Belgium's university profes- 
sors makes clear. 

Professors used to hide 
behind the principle of aca- 
demic freedom to reject any 
outside control on the quan- 
tity and the quality of their 
services. This is changing 
slowly. A Belgian newspaper 
now publishes yearly rank- 
ings of economics professors 
based on their publications 
and citations. 

The teaching performance 
of professors is routinely - . 
evaluated using surveys on- 
students' satisfaction. What 
was thought to be impossible 
turns out to be quite feasi- 
ble, and is changing the uni- 
versity landscape. 

Something s imilar should 
be done for the judiciary. 
Why not survey the satisfac- 
tion (or dissatisfaction) of 
the citizens who use the sys- 
tem? One could certainly ask 
the “consumers" questions 
about the speed with which 
trials were conducted and 
about the responsiveness of 
the judges to arguments. 

In addition, it should be 
possible to subject the qual- 
ity of court rulings to out- 
side expert control. Rank- 
ings could be established to 
give the public some idea of 
the quality of different 
courts of justice. 

Other methods (and proba- 
bly better ones) can be 
devised. They are essential 
to restore a semblance of 
efficiency and fairness to the 
Belgian judicial system, so 
that the country can return £ 
to its happy state of having' 
no recognisable image in the 
outside world. 

The author is professor of eco- 
nomics at the University of 
Leuven and MP for the 
Liberal party in the Belgian 
parliament 



Street protest: the government of Jean-Lac Dehaene (inset) 
has been under attack over the complacency of the state 





IS 



FRIDAY NOVEMBER 3 1996 


1 *tf)l 




hk : . 

HVi| n 

s' 

ittlvJ 



financial times 


Number One Southwark Bridge, London SE1 9HL 
Tel: +44 171-373 3000 Telex: 922186 Fax: +44 171-407 5700 

Friday November 1 1996 


A Japanese 
arrangement 


Mr Ryutaro Bashimoto. Japan’s 
outgoing prime minister, 
appears to have done <»r»r^ g > 
deals to bring his Liberal Demo- 
cratic party back to power as a 
minority government, even if he 
fails to win mare backing from 
Independent members of parlia- 
ment But the 10-point plan be 
agreed yesterday with his for- 
mer coalition partners - to 
ensure their tacit support - foil s 
well short of being the sort of 
reform platform that many were 
hoping for. 

At its heart lie proposals for 
bureaucratic reform, the one 
issue on which ah the mai n par- 
ties in the recent election cam- 
paign were agreed. Thus over a 
five-year period from 1998, the 
number of government minis- 
tries win *be reduced, with, pre- 
cise proposals to be drawn up 
over the next 18 months. 

In addition, the parties have 
agreed to review the electoral 
system, reducing the number of 
seats in both houses of parlia- 
ment; to discuss tax reform; and 
to seek to improve relations 
with neighbouring countries. 

It is scarcely a radical pack- 
age. Reform of the heavy- 
handed and cumbersome Japa- 
nese bureaucracy is certainly 
necessary. But it needs to pro- 
ceed hand in hand with eco- 
nomic deregulation, to reduce 
the opportunities for bureau- 
cratic interference. . Red tape 
needs to be scrapped in & host 
of vital areas, from financial 


services to teleconmiunicattons, 
and including the labour mar- 
ket, housing, health and wel- 
fbre. Reform is needed to ensure 
more domestic competition and 
more flexibility in the markets, 
in order to revive the economy 
from its worst slowdown in 80 
years. But there is no mantim) 
of such measures in the pack- 
. age. 

Given the recovery in the for- 
tunes of the conservative LDP 
in the elections, with an 
increase from 211 to 239 seats in 
the 500-member lower house, 
some feared it would be too 
strong to be bothered to press 
ahead with reforms. In the 
event it seems more likely to be 
too weak. So ft will be up to the 
opposition parties, such as the 
left-wing Social Democratic 
party, and the pro-deregulation 
New Frontier party, to maintain 
the pressure for action. 

Use worst indictment of the 
political establishment was the 
record low turnout of 59 per 
cent in the October 20 election. 
It suggested few expectations of 
genuine change, whoever came 
to power. Mr Hashhnoto has a 
reputation as a pro-active prime 
minister, and he now has a 
chance to prove the voters 
wrong. He is due to be pres- 
ented with a package of deregu- 
lation plans by the advisory 
Economic Council before the 
end of November. He has much 
to gain by rapidly putting them 
into effect 


Shark pool 


A new generation of 
high-pressure sales representa- 
tives, using cold calls, is per- 
suading gullible European 
investors to put their money 
into currency trading schemes 
and shares of dubious value. 

Many of the perpetrators 
learned their- craft in some of 
the infamous operations of the 
1980s. Since then, cold- callers 
have cleverly exploited new 
technologies to evade the police 
and financial regulators. 

They have learned to shelter 
in corporate mazes which take 
maximum advantage of regula- 
tory gaps and banking secrecy. 
Investors are contacted by 
cross-border mail shots or tele- 
phone calls. 

The companies’ bank 
accounts and administrative 
offices are in another country, 
often Switzerland. Investors’ 
funds, once committed, are diffi- 
cult to track or retrieve because 
of banking secrecy and the 
speed of electronic transfer. 

Some complaints represent 
only ffie disappointment of spec- 
ulators who belatedly realised 
the risks, or the fact that com- 
mission structures were stacked 
against them. But even when 
fraud is suspected, there are dif- 
ficulties or jurisdiction. Since 
many companies avoid selling 
into their local markets, there is 
less incentive for police or regu- 
lators to become exercised. 

The EITs Investment Services 
Directive, under which a com- 
pany authorised in one country 
will be given a “passport" into 


all others, is intended to address 
some of these problems. But 
countries are implementing the 
ISD at different paces and with- 
out uniform definitions. For 
example. “Rolling spot” deals 
(forward foreign exchange con- 
tracts of seven days or less, 
which are rolled over), used by 
many cold callers, are not regu- 
lated in Germany. 

The UK has made the most 
progress in protecting investors, 
partly because it has access to 
tough civil remedies. It was the 
first to regulate “rolling spot-, 
although applications for per- 
manent authorisation take too 
long to be decided. 

The Securities and Invest- 
ments Board has shown that it 
will act against foreign compa- 
nies calling into Britain, even if 
such actions are too late to help 
the losers. 

The UK is also right to insist 
on the licensing of individuals: 
companies can more easily 
adopt new identities. Another 
step would be to explore ways of 
using public exposure, within 
the limits of what is possible 
under confidentiality rules, to 
warn about sharp operators. 

But apart from keeping a 
tight rein on licensing, raising 
public awareness of risk and 
pursuing criminal proceedings 
where appropriate, European 
countries should not waste sym- 
pathy on "victims". Once the 
authorities have warned that 
there are sharks in the pool, it 
is for investors to decide 
whether to take the plunge. 


Software power 


It is a cliche of the media 
business that content is king- 
Rarely has this been more evi- 
dent than in the agreement ear- 
lier this week to encrypt the 
contents of the new generation 
of mass- market recordings, digi- 
tal video discs (DVDs). 

Copyright owners - the Holly- 
wood studios and record compa- 
nies - refused to allow DVDs to 
carry their products In pre-re- 
corded form unless they were 
• protected against piracy. After 
dragging their feet, consumer 
electronics manu fa cturers at 
last agreed - but too late for a 
full launch oE DVDs this Christ- 
mas. A product the industry 
I badly needs has been put back 
: by up to a year. - 
1 The growing power of content 
1 over hardware was first evident 
•two decades ago, when Sony's 
Betamax video-recorder lost out 
to JVC's VHS because the film 
studios backed the latter. In 
response, Japan’s hardware 
manufacturers attempted to 
become software producers too. 
Sony bought Columbia; Matsu- 
shita bought MCA. Both epi- 
sodes proved expensively unsa- 
tisfactory, and Matsushita has 
now withdrawn. 

Not only were the two Japa- 
i nese parents unable to run their 
knew software businesses well, 
they were unable to take advan- 
f iage of the costly access to the 
L creative community that owner- 
■ship provided. Jff they had lis- 
tened properly to their new sub- 


sidiaries, for example, they 
would have been aware of the 
seriousness of the DVD copy- 
right problem earlier. And if 
they had made themselves at 
home in Hollywood, they might 
have been able to negotiate an 
earlier compromise. 

This episode underlines the 
consumer electronics manufac- 
turers’ unenviable dilemma. 
The experience of Sony and 
Matsushita argues against try- 
ing to mi* hardware and soft- 
ware; yet without some influ- 
ence over the software business, 
they will increasingly surrender 
the whip band on important 
aspects of new-product specifi- 
cations to the content-providers. 

There is only one way out of 
this box: the creation of a new 
and compelling category of 
hardware, one which software 
producers have no alternative 
but to endorse. Against that 
yardstick, the DVD does not 
measure up. 

More plausible contenders are 
interactive on-line products 
such as WebTV. To break into 
the mass market, however, 
.these products will need much 
greater innovation in hardware, 
software and infrastructure 
than we have yet seen. And in 
- this market, just as much as m 
DVDs, content will still play an 
influential role. Consumer elec- 
tronics remains a good business 
- but not quite as good » « 
was before content providers 
woke up to their power. 


COMMENT & ANALYSIS 









Boris 

Yottaif) 


Anatoly 

Chubais 


Tatyana 

Dyachenko 


Bods ; % ; ‘Wacfimir •: Vfecffndr l ' f •;* 


Moscow’s Group 
of Seven 

Chrystia Freeland, John Thornhill 
and Andrew Gowers on the business 
leaders shaping Russia’s future 



E very January, an 
extraordinary collec- 
tion of politicians and 
senior business lead- 
ers from around the 
world descends on the Swiss 
resort of Davos to ski, eat, drink 
and make deals. 

Even by its own standards, 
however, this year's World Eco- 
nomic Forum was the backdrop 
for a bargain of unusual signifi- 
cance. Behind the scenes and 
without the knowledge of other 
participants, a small group of top 
Russian businessmen fanned an 
alliance that would reshape their 
country’s future. 

They agreed that a communist 
victory in the summer presiden- 
tial election had to be stopped at 
all costs. To forestall such a 
disaster, it was imperative that 
President Boris Yeltsin's fading 
fortunes be revived. One man, 
they decided, had the talents for 
the task: Anatoly Chubais, far- 
mer minister, economic reformer 
and architect of Russia's privati- 
sation programme. 

Their pact was more than the 
beginning of Mr Yeltsin's politi- 
cal resurrection and ultimate vic- 
tory in July. It also established & 
new centre of power in Russia, 
uniting tycoons who typified the 
country's new capitalism and 
who had been savage rivals until 
this year. 

The same tight-knit group of 
seven businessmen now meets 
weekly and works closely with 
Mr Chubais, now the ailing Presi- 
dent Yeltsin's chief of staff Its 
members portray themselves 
quite openly as the main force 
shaping Kremlin policy. 

And the group has placed two 
of its members - Mr Vladimir 
Potanin and Mr Boris Berezovsky 
- in important government posi- 
tions. This week's appointment of 
Mr Berezovsky, head of a sprawl- 
ing business empire comprising 
car dealerships, TV stations and 
a bank, as deputy secretary of 
the Kremlin's Security Council 
consolidates the businessmen's 
capture of power. 

On Wednesday Mr Berezovsky 
revealed far the first time in an 
interview with the FT how the 
business alliance funded Mr Yelt- 
sin’s re-election drive to the tune 
of about $3m. He described how it 
appointed a lO-stroog campaign 
team headed by Mr Chubais and 


also containing Ms Tatyana 
Dyachenko, Mr Yeltsin's daugh- 
ter. And he explained why he and 
his colleagues had concluded 
they had to join the government 
to protect capitalism in Russia. 

“Before the elections, business 
realised that if business is not 
consolidated - If we are not 
strong and decisive - we will not 
have a chance,” he said. “It is not 
possible to have this [market] 
transformation automatically. 
We need to use all our power to 
realise this transformation." 

Apart from Mr Berezovsky, the 
group of seven comprises: Mr 
Potanin, former head of Onextm- 
bank and now first deputy prime 
minister for the economy; Mr 
Vladimir Gusstnsky, head of the 
powerful Most banking and 
media group; Mr Mikhail Khodor- 
kovsky. president of the Menatep 
financial and ofl empire; Mr Peter 
Aven and Mr Mikhail Friedman 
of Alfa Tbmir; and Mr Alexander 
Smolensky of Stolichny Bank. 
Tbeir six enterprises, according 
to Mr Berezovsky, control about 
50 per cent of the economy. 

By the accounts of several of 
their number, these men were 
intimately involved in every step 
of Mr Yeltsin’s re-election cam- 
paign and. the subsequent politi- 
cal manoeuvring. They engi- 
neered the alliance between 
President Yeltsin and Mr Alexan- 
der Lebed, his presidential rival, 
after the election’s first round - 
without which, said Mr Berezov- 
sky, the president would have 
been “unable to win decisively” 
in the second. 

The businessmen's proposal 
that Mr Chubais be appointed 
presidential chief of staff was 
also a logical one. The 41-year-old 
former privatisation chief was 
respected by the president; of all 
Russia's young economic reform- 
ers he had shown himself to be 
the deftest wielder of power; he 
believed passionately in the mar- 
ket economy and was not over- 
delicate about how - or with 
wham - to secure it. 

As important, the bankers 
largely saw themselves as Mr 
Chubais’s creation, since their 
fortunes were founded on the 
reforms he introduced. “My posi- 
tion is very natural, ” said Mr 
Berezovsky. “I am a product of 
privatisation. That is why I am 
so Close to Chubais’s mentality." 


Now, together with the presi- 
dent's daughter, Ms Dyachenko. 
Mr Chubais serves as the busi- 
nessmen's conduit to the sick 
leader. “She is the most effective 
channel to inform the president," 
said Mr Berezovsky. 

During the elections, the busi- 
nessmen further entrenched 
themselves by ousting rival fac- 
tions from the president's entou- 
rage. First to go was the hardline 
clan surrounding General Alex- 
ander Korzhakov. Mr Yeltsin’s 
former security chief and drink- 
ing partner. “We had not only to 
elect a president who would con- 
tinue reform, but also to cut the 
right wing and the left wing," Mr 
Berezovsky said. 

With victory secure, it was 
time to dispense with Mr Lebed, 
the unruly general who was, in 
Mr Berezovsky’s words, “starting 
unfortunately to destroy the 
power”. He was sacked by presi- 
dential decree last month. 

At the same time, the group 
was debating how to exercise its 
power. In Russia’s infant market 
economy, members decided, the 
new moguls had to assume 
authority in their own right. The 
banks had to have their men in 
government. 

According to Mr Aven, presi- 
dent of Alfa Bank, it was their 
collective decision to bring Mr 
Potanin into the government. 
“He [Potanin] had the feeling 
that one of the big bankers bad 
to go there,” he said. “He had the 
support of the other big banks." 

The businessmen's reasoning 
was stark. Even if the threat of 
communism had receded with 

‘It is very dangerous, 
because we could 
easily find ourselves 
controlled by a new 
nomenklatura. 

They are getting 
new privileges - 
and eating increases 
the appetite* 


the July election, Russia’s future 
as a flourishing and stable mar- 
ket economy was for from secure. 

Not only was the president 
largely out of action pending 
heart surgery; there was also the 
risk of serious social unrest, with 
wage arrears mounting and gov- 
ernment finances collapsing. The 
bankers - several of whom are 
leading members of Russia's Jew- 
ish community - feared they 
could become the target of an 
extreme nationalist backlash. 

Mr Berezovsky said he thought 
a nationalist shift was inevitable: 
“The question is only what price 
we will pay for it: an ocean of 
blood or just a cough.” 

The businessmen's answer is 
now apparent They have assem- 
bled a remarkable political 
machine to entrench and pro- 
mote the market economy - as 
well as their own financial inter- 
ests. They not only have signifi- 
cant roles in the cabinet and the 
Kremlin, they also control Rus- 
sia’s two top television networks, 
a popular radio station and a 
growing number of national 
newspapers - assets they are 
happy to use to advance their 
agenda. 

“We and the group of Mr Gus- 
sinsky were the first who realised 
how the mass media could assist 
the different steps we wanted to 
take," said Mr Berezovsky. “If the 
media had not been free or pri- 
vate, we would not win elec- 
tions." 

The group of seven see them- 
selves as an embattled elite pool- 
ing their efforts to steer Russia 
through a difficult transition. 
Other important figures in the 
country take a different view. 

IVCr Berezovsky's appointment 
th i s week has sparked vigorous 
protests uniting the communist 
opposition and Russia’s small 
band of liberal democrats. Critics 
say the businessmen represent 
an unelected oligarchy whose 
rise to power jeopardises the 
country's chances of becoming a 
democratic state with an open 
market economy based on the 
rule of law. 

Mr Sergei Kovalev, a leading 
human rights campaigner, said: 
“It is very dangerous, because we 
could very easily find ourselves 
controlled by a new nomenklatu- 
ra .. . They are getting new privi- 
leges - and eating increases the 



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and Buenos Aires, such as the 
foct.that the two countries’ 
soldiers work together closely as 
peacekeepers in Cyprus, and 
until recently did so in Bosnia. A . 
Royal naval vessel, HMS 
Endurance, called last year at 
Brands Aires and apparently 
received a warm reception. 

Thin mutual fl rt ml r ation 
society might even reach the 
highest possible plane - a polo 
match between the two 
' countries’ armed forces. Our 
money's on the Argentines - . . 


Dollars and sense 

. ■ Farevre&frying pan, hello fire. 
Serge Robert, the French banker 
who has just been named 
■governor of Bosnia’s new central 
bank, might well consider 
; adopting that as his personal 
motto. 

Bobert has the delicate task of. 
. implementing the ffrwwrbii aide 
of the Dayton peace agreement 
aimed at re-undfstog the 
country's two halves, under 
which the bank should amass • 
suffictoot foreign reserves to 
^support a ctmunon currency. 

The Mbelmn, Seh.and • 
Groat-controlled parts now each, 
have their awn currency, with 
' tfae Peatodimark the only one . 

. accepted across Bosnia.. / . ' : 

. . Oh, and the frying pan? Robert 
has jiost spedt the last.^fot 
months as s^dor adviser to the 
'governor og Haiti’s central bank. 


appetite. This new nomenklatura 
Is insolent and is not subject to 
any rules." 

Mr Grigory Yavlinsky, leader 
of the liberal Yabloko party, 
agreed: “Our new regime is 
reproducing the characteristics of 
the old system.” The new finan- 
cial and media empires were 
more than business concerns: 
“The name is not just banks and 
television: it is oligarchy and 
mafia.” 

The motives of the business- 
men may be clear, but what puz- 
zles many is what Mr Chubais is 
up to. He has won enormous 
respect in the west for his bold 
market reforms and integrity, 
and grudging admiration in Rus- 
sia for his staying power in gov- 
ernment But today, some of Mr 
Chubais's oldest friends fear he 
has made a Faustian bargain. 

If so. he almost certainly 
knows what he is 1 doing. Mr 
Kovalev, a former dissident and 
an MP for Russia's Choice, the 
party Mr Chubais helped found, 
recalls a conversation a couple of 
years ago in which Mr Chubais 
complained bitterly at^out leading 
businessmen. 

“They steal and steal and steal. 
They are stealing absolutely 
everything and it is impossible to 
stop them,” he quoted Mr Chu- 
bais as saying. “But let them 
steal and take their property. 
They will then become owners 
and decent administrators of this 
property.” 

Mr Kovalev commented wist- 
fully: “From my point of view 
this is economic romanticism. 
There is a view that the country 
will become a market economy 
and then everything good will 
follow. Then there will be democ- 
racy. In my view it is a very 
dangerous mistake." 

He is not alone in his worries. 
Mr Yegor Gaidar. Russia's first 
reforming prime minister in 
1991-92 and a close friend of Mr 
Chubais, voiced the fear in an 
interview this week that the new 
Russian brand of capitalism - 
featuring intimate ties between 
corporations and the state and 
restricted markets - could be 
fatally flawed. 

“To tell you the truth, I dislike 
it," he said. “I know from eco- 
nomic theory that If you try to 
restrict markets you create the 
basis for enormous corruption." 


50 years ago 

' Nationalisation in France 
. Newspaper reports to Paris 

• substantiate recent rumours 
of operational losses suffered 
: by the principal enterprises 
nationalised during the last 12 
months. The position of the 
- National Coal Mines 
Cojporatron, which operates 
all French coal mines, 
..appears especially 
unfavourable, its monthly 
deficit being estimated at 
Frs^ 00 , 000 , 000 . A 
communique of the.Ministry 
Of Industrial Production 
admits that disbursements in 
the tbfrd quarter of 1946 
exceeded income by some 
Frs.4 milliards of which Frs.2 
milliards represented the cost 
of State holidays and capital 
re-equipment Suggested 
remedies are an increase in 
the retail price of coal by 
approximately 22 per cent or 
restoration of the 
Government subsidy. 

U-S. Lifting Controls 
Rapid progress is being made 
by the.U.S. authorities in 
issuing the various edicts 
necessary to terminate 
Government controls on 
comzbodity and food markets: 
Resumption of futures trading 
in wheatacd lard has been 
sanctioned at Chicago, and 
tea has-been Breed from ail 
restrictions other than 
general import .control. 








16 


LEGAL DEFINITIONS 


commission n. os In European I ivtun we 
must be at the bean of Zwtat we must be ox the 

throat of (see Eunuceptics) 3 fee paid to on open. 
vx ROW* ft MAW: BMP iph 0171*248 4282) 


LAWYERS FOR BUSINESS 


FINANCIAL TIMES 

Friday November 1 1996 


Swissair threatens to ditch stake in airline Tutsis 

Sabena crisis averted tighten 

• a . a hold on 

as unions agree to cuts eastern 


j 

first err 

* 




THE LEX COLUMN 


By Emma Tucker In Brussels 
and Wffllam Had hi Zurich 

A fresh financial crisis at 
Sabena was averted yesterday 
as trade unions agreed a cost- 
cutting programme after 
Swissair threatened to walk 
away from its SFr260m (S207m) 
investment in the Belgian 
national airline. 

Mr Paul Reutlinger. the 
Swissair-appointed president 
of Sabena. indicated that If 
unions continued to disrupt 
operations, the Swiss company 
might write off its investment 
in the company and even relin- 
quish its 49.5 per cent stake. 

He said that, if Swissair did 
not get the hoped-for return on 
its stake in Sabena, the man- 
agement would decide not to 
invest any more and “pull out 
of the company”. 

The threat receded after an 
announcement that Sabena 's 
management had reached 
agreement with unions on a 
draft accord to cut BFr2bn 
($6Q0m) off wage costs. In 

Anger over 
work rule 

Continued from Page 1 

ensured such measures would 
not be applicable in the United 
Kingdom. 

However. last March an ; 
advocate general of the Euro- I 
pean Court of Justice made a 
preliminary ruling that the i 
UK government's challenge of 
the legality of the directive 
had no foundation. 

The final judgment is sched- 
uled for November 12. In a 
majority of cases, the court 
has endorsed preliminary rul- 
ings. 

Mr Major plans to campaign 
in the British general election, 
expected next May, on a plat- 
form that he will scupper the 
IGC unless the directive is 
“disapplted” in the UK. 

The government will 
attempt to delay the direc- 
tive's effect in the UK by cit- 
ing the need to prepare. 

But it has agreed H will not 
be seen to be breaking the 
law. 

Malaysia 

Continued from Page 1 

May bank, which will inevita- 
bly compete with the new 
entity'. But analysts said the 
government, which has a sub- 
stantial indirect stake In May- 
bank. persuaded it to sell its 75 
per cent holding in Kwong 
Yik. 

A proposed merger earlier 
this year between the local 
Pacific Bank and the Malay- 
sian operations of Singapore's 
Oversea -Chinese Banking Corp 
has yet to be finalised. 


return, management will come 
up with another BFr2.7bn of 
savings by increasing effi- 
ciency between now and 1998. 

Swissair's shares fluctuated 
wildly In response to the day's 
developments before closing 
only SFrl weaker at SFr«85. d 

Sabena's "Horizon 1998“ plan 
was drawn up by Mr Reutlin- 
ger as a way of saving Sabena 
without alienating the unions. 
His predecessor. Mr Pierre 
Godfroid. resigned after unilat- 
erally suspending all collective 
job agreements - a move 
which led to extensive disrup- 
tion by ground and pilot staff. 

Yesterday, unions represent- 
ing Sabena workers agreed to 
the terms of the plan, but 
pilots staged a strike that 
delayed some flights. They 
wanted to signal their disap- 
proval of the agreement but 
said they did not envisage any 
more action in the near future. 

The savings would be 
reached through a combina- 
tion of a two-year wage freeze, 
job cuts, changes to working 


conditions, increased flexibil- 
ity and internal transfers. 

Swissair's fortunes .are 
closely tied to the success of 
its investment in Sabena 
which it bought In May 1995. 
Sabena is supposed to provide 
it with a base within the soon- 
to-be-liberallsed European 
Union airline market. 

But the investment has 
failed to live up to expecta- 
tions and is proving a chal- 
lenge for Swissair's highly 
regarded new management 
team headed by Mr Philippe 
Bruggisser. Swissair's shares 
have fallen 27 per cent from a 
peak of SFrl.345 this year. 

Analysts believe it would be 
very hard for Swissair to walk 
away from its investment, in 
spite of its threats, because of 
its own heavy financial expo- 
sure. In addition to taking a 
stake, the Swiss carrier has 
provided another SFrl 60m in a 
loan to a consor ti um of Bel- 
gian investors in Sabena. 

World stocks. Page 34 


Hashimoto clears 
way for minority 
LDP government 


By WllGam Dawkins ki Tokyo 

Mr Ryutaro Hashimoto seems 
certain to be elected next week 
for a second term as Japanese 
prime minister, at the head of 
a one-party minority govern- 
ment. 

Mr Hashimoto moved a step 
closer to forming a govern- 
ment yesterday when his Lib- 
eral Democratic party finalised 
a policy accord with its two 
former coalition partners. 

Members of parliament will 
probably elect Mr Hashimoto 
by a narrow margin at an 
extraordinary session of the 
lower house next Thursday. 
The conservative LDP is likely 
to govern alone, with its two 
former partners offering par- 
liamentary support on the 
Issues outlined in the policy 
accord. 

That would make the next 
government more coherent 
than the previous disparate 
alliance of conservative LDP 
plus leftwing Social Demo- 
cratic party and centre-left 
New Harbinger party. 

However, the position of a 
one-party LDP government 
would be so precarious that it 
would be able to pass only 
un controversial legislation. 
That suggests a host of pro- 
business proposals could be 
delayed, including the lifting 
of a ban on holding companies, 
the break-up of Nippon Tele- 
graph and Telephone and cuts 
in corporate taxes. 

Mr Hashimoto's progress on 


bureaucratic reform win prob- 
ably determine how long his 
government will be able to 
hang on to power. 

The prospect of another 
weak government contributed 
to yesterday's 1.04 per cent 
decline in the Nikkei 225 aver- 
age to 30,456.66. It has fallen 
2-34 per cent, or 491 points, in 
the past two days. 

Yesterday's accord commits 
the next administration to a 
10-point plan, the Tnarin high- 
light of which will be propos- 
als to streamline the number 
of government ministries In 
the five years from early 1998, 
when the bureaucratic reform 
proposals are due to be submit- 
ted to parliament 

The need to reduce the size 
of Japan's powerful bureau- 
cracy was the keynote of the 
mni pfli g na of all the main par- 
ties in the October 20 election. 
The LDP fell just short of a 
majority at the polls, winning 
239 seats in the 500-seat lower 
bouse of parliament 

The most recent minority 
government, under Mr Tsu- 
tomu Hata in early 1994. lasted 
just two months, the shortest- 
lived in Japanese postwar his- 
tory. Mr Hashimoto's next gov- 
ernment is expected to last 
longer than that, if only 
because the current opposition 
is more fragmented and disor- 
ganised than was the LDP dur- 
ing its year-long stint in oppo- 
sition until mid-1994. 

Editorial Comment. Page 16 


tighten 
hold on 
eastern 
Zaire 

By Mlcheta Wrong in Nairobi 

Tutsi fighters are on the verge 
of seizing a swathe of e as ter n 
Zaire, putting them In a posi- 
tion to dictate terms to the 
Zairean authorities. 

The country’s undisciplined 
and anarchic army seemed to 
be heading for a humiliating 
defeat yesterday as Tutsi 
fighters advanced on Goma, 
the capital of north Kivu. 
Zaire’s president, Mr Mobutu 
Sese Seko, is absent, under- 
going treatment for prostate 

cancer in Switzerland. 

The Totals were r eported to 
1 be in control of Goma airport, 
a key access point for army 
reinforcements from 
and the centre of relief 
operations for more than 1m 
refuge e s . 

The presence in the area of 
the Hutu refugees, who fled 
the 1994 genocide in Rwanda, 
is deeply resented by the Tutsi 
regimes in both Rwanda and 
Burundi, which have been 
under frequent attack from 
extremists in their ranks. 

To the south, Tutsi Bany- 
amuleuge guerrillas took sev- 
eral reporters on a 60-mlIe 
tour of the area between Lake 
Kivu and Lake Tanganyika, 
demonstrating that a s tret ch 
of land from the towns of 
Uvlra to Kamanyola was now 
In rebel hands. 

Mr Laurent Kabila, of the 
Alliance of Democratic Farces 
for the Liberation of Congo- 
Zaire - the name adopted by 
the Banyanmlenge guerillas - 
told a Reuters reporter his 
men bad captured Bukavu, 
capital of south Kivu, and 
were mopping up resistance 
by militiamen and former 
Rwandan soldiers. 

Analysts suspect the Tutsi 
fighters in north Kivu may be 
members of Rwanda’s army. If 
this were proved, it would 
lend weight to the theory that 
a proxy war is being fought In 
the region between the Rwan- 
dan and Zairean armies. 

Rwanda continues to deny 
being behind the fighting, 
describing it as an internal 
Zairean problem and refusing 
to take part in ceasefire talks. 

As mortars and artillery fire 
targeted the outskirts of Goma 
yesterday. 115,000 Hutu refu- 
gees from the camp of 
Kahindo. 40 miles north of 
Goma, were beading south. 

Aid workers said they were 
aiming for Mugunga, where 
400,000 Hutns make up what 
has been described as “the 
biggest refugee camp in the 
world". 

Relief agencies, which this 
week pulled their Interna- 
tional staff out of south Kivu, 
were on standby to evacuate 
about 120 expatriate staff but 
said that they were reluctant 
to leave while their help was 
needed by the numbers swell- 
ing Mugunga. 


FT WEATHER GUIDE 


Europe today 

There will be rain and showers 
over most of the British Isles as a 
frontal system approaches. The 
rain will be particularly heavy in 
Scotland. The Benelux and 
Germany will stay rather cloudy 
with rain or showers over 
Germany. Most of France will have 
sunny periods although the 
Mediterranean coast will be sunny. 
The Iberian peninsula and southern 
Italy will have plenty of sun but 
patches of cloud are expected m 
northern Italy. The Alps will have 
some showers. The Balkans are 
expected to be sunny and dry. 

Five-day forecast 

More rain and showers are 
expected over western Europe as 
e series of depressions moves Into 
the continent. Each disturbance 
will be accompanied by strong 
winds. High pressure will provide 
plenty of sun over most of the 
Mediterranean and over eastern 
Russia. 


TODAY'S TEMPERA? 






L.v-v-- • . '-M 



l> 4 . to •* ■' - 




••*■*55283?^ 

jgJPpIg 

■r - 

p 17 JsS 

\ ^ 


^ l<M 

Jm 


^ » HIGH 


i Mpomd m ••• 


Warm front AjOl Cold front Wind speed bi KPH • y’X' ... 

Situation at IS GMT. Ta mpoutu ros maximum for day. Forecasts by Metoo Consult at the Motherlands 



Maxlmun 

Balling 

[air 13 

Caracas 

cloudy 30 

Faro 

sun 22 

Madrid 

sun 18 

Rangoon 


Cddua 

EWfusJ 

shower 14 

Cardiff 

show* 14 

Frankfurt 

rain 14 

Maferoa 

sun 20 

Reykjavik 

Abu Dhabi 

sun 31 

Bolgmda 

fair 13 

Casablanca 

sun 22 

Geneva 

cloudy 14 

Malta 

3U1Z1 

Fte 

Accra 

show* 32 

Berffn 

rain 13 

Chicago 

cloudy A 

Gibraltar 

sun IS 

Manchester 

ram 15 

Romo 

Algiers 

SWi 22 

Bermuda 

fair 25 

Cologne 

rain 13 

Giesgow 

ram 15 

Manila 

show* 31 

S. Fraco 

Amsterdam 

cloudy 13 

Bogota 

show* 10 

Dak* 

aun 32 

Hamburg 

rain 12 

MsflXJurrre 

fair 15 

SeoU 


her ia 

Bombay 

s*i 32 

Dates 

cloudy 14 

HdWrW 

rain 8 

Mexico City 

fab 24 

Singapore 

Atlanta 

sun 27 

Brussels 

far 13 

DeM 

swi 31 

Hong Kong 

fair 29 

Miami 

fair 30 

Stockholm 

3. Aires 

ft* 23 

Budapest 

fair 10 

Dub* 

sun 31 

HorvhJu 

ft* 30 

Milan 

fair 16 

Strasbourg 


ram 15 


show or 11 

Dublin 

show* 15 

latartAd 

fair 14 

Montreal 

shower 4 

Sydney 


show* 34 

Cairo 

sun 25 

Dubrovnik 

show* 17 

Jakarta 

far 32 

Moscow 

fair 5 

Tangier 
Tel Avtv 


sun 18 

Cope Town 

3*i 23 

bdlnourgn 

rain 14 

Jersey 

fair 15 

Munich 

rain 18 






Karachi 

sun 32 

Nairobi 

fair 29 

Tokyo 







Kuwait 

sun 34 

Naples 

srfi 17 

Toronto 


No other airline flies to 

more cities in 

L. Angeles 
Las Palmas 

sun 19 
sun 26 

Nassau 
New York 

fair 29 

ckwdy 6 

Vartcouver 

Venfca 


Eastern Europe. 



uma 

fair 21 

Mce 

*4119 

Vienna 








sun 20 

Nicosia 

show* S3 

Warsaw 


) Lufthansa 


; 

London 

Lux-bourg 

far 16 
cfoudy 12 

Oslo 

Parle 

ft* 9 
fair 15 

Washington 

Wellington 







Lyon 

Madeira 

lair 18 
sun 24 

Penh 

Prague 

cloudy 27 
fair 11 

Winnipeg 

Zurich 



shower 33 
snow -8 
shower 28 
sun 20 
sun 21 
fa* 17 
shower 33 
rain 5 
shower 15 
tab 21 
sun 22 
sun 24 
shower 22 
fair 6 
swi 12 
Mr 14 
show* 12 
rain 8 
cloudy 12 
cloudy 12 
cloudy -3 
show* 13 



All of these securities hove been sold This announcement appears as a matter of record only. 

MINORCO 

Minorco (U.S.A.) Funding Inc. 

$ 400 , 000,000 
Guaranteed Notes 


Series A Notes due 2006 
Series B Notes due 2011 
Series C Notes due 2016 


Guaranteed by 

Minorco 8 A. 


The undersigned acted as private placement advisor 
on this transaction 


JPMorgan 


October 1996 











t , 


Js f 


. -A. 
>■ :-.'v 


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- I- . ^ 

. . r .l • V . 
’ i>s / r : 


FBVANCIAJL TIMES 


FRIDAY NOVEMBER 1 1996 



' •. s t 

. \7 ' h- “ 


R icardo Semler 
breezed Into the 
aiuinal conference 
of the Institute of 
Personnel and Development 
to Harrogate last week; 
enlivening a programme 
dominated by the colourless 
language of new manage- 
ment. 

Semler, president of 
Semco, the Brazilian indus- 
trial products manufac turer, 
was visiting the UK to pass 
on the recipe for his own 
style of management In feet 
it was more like an antidote 
to management because 
Semler spends very little 
time managing. Most of his 
work is spent' lobbying man- 
agers among the g*n«m satel- 
lite units of not more 
about 10 people which, char- 
acterise a growing propor- 
tion of the company. 

Some of hi« ideas axe 
adopted, some are not Suc- 
cessful business ideas also 
emerge without Ms contribu.-' 
tioo. One idea that led to the 
creation of a business pro- 
viding management far oat- 
sourcing programmes con- 
tributed 50 per cent of the 
group profits within two 
years of its formation. “The 
concept was something 1 
didn’t understand but others 
did,” said Semler. 


Richard Donkin meets a Brazilian who believes that freedom at work is a recipe for results 

Welcome breath of laisser faire 


His views on employment 
axe radical. “Every company 
needs lazy employees,” he 
said in a typically provoca- 
tive statement He believes 
Hat working should reflect 
the way people behave out- 
side the office. Not everyone, 
he argues, Is imbued with 
the same approach to work. 
Teams, however, can feed 
and prosper irom a combina- 
tion of styles. 

Semler has no idea how 
many people work for the 
company or how rmirh they 
are paid. Many of them set 
their own pay rates. “Why 
debate salary? We all want 
to make as much, as possi- 
ble,” be said. Employees are 
provided with the informa- 
tion to settle their own pay - 
they know what the market 
pays, how much colleagues 
earn inside the company 
how much money the com- 
pany is making. When estab- 
lishing their pay rates, says 
Semler, employees know 
that six months later a 
department may no longer 


want to buy their work if 
they have priced their ser- 
vices too highly. 

Two out of three people 
who work on the premises 
are self-employed or work on 
contract for another com- 
pany. They can use the hard- 
ware and telephones just the 
same. Sender’s laisser faire 
management seems to work. 
Sera co has grown nine-fold 
In the last 10 years to 
become one of Brazil's lead- 
ing companies in this field. 

His idiosyncratic formula 
is based, he said, on a simple 
premise that the most diffi- 
cult thing in business is to 
get .people interes t ed in their 
work. “Everything else - 
quality, profit growth - will 
fen into place if enough peo- 
ple are interested in coming 
to work on Monday morn- 
ing,” he said. 

Semler began frfo approach 
to the business by asking 
“childish questions’* such as 
“what happens if someone is 
not there at certain time?" 
Some in his company 


believed that if there were 
not fixed working hours peo- 
ple would come as late as 
possible and leave as early 
as possible. Semler believed 
differently. “People go to 
work because they are 
looking to do something 
with their life. I have never 
met anyone who goes to 
work for the money. In the 
same way I have never met 
any h nsfn & qoman who is In 
business to make money.” 

He refuses to be paternal- 
istic or to set any kind of 
company culture. Culture, 
he argues, is a dynamic that 
is constantly changing. 
Employees can wear what 
they want at work. OK. 

All the businesses work on 
six-month cycles when peo- 
ple may change jobs or be 
removed from their jobs if 
they have not performed. 
Each individual must justify 
his place in the team - even 
the head of the team - to his 
colleagues. Job rotation is 
encouraged. 

When someone is recruited 


they are given a blank card 
on which they can write 
their own title. Most do not 
opt for a title although one 
operations manager, said 
Sender, decided to call him- 
self “Royal Pharaoh in 
charge of operations”. 

He rejects the suggestion 
that the business is anar- 
chic. “Everybody knows 
what they are doing there, 
why they are there and how 
they are contributing to the 
final result” The three cor- 
nerstones of his approach 
are employee participation, 
profit-sharing and . open 
information systems. He 
said: “Participation gives 
people control of their work, 
profit-sharing gives them a 
reason to do it better and 
information tells them 
what’s working and what 
isn’t” 

The most refreshing aspect 
of Sender’s approach in a 
business world that is 
becoming wedded to process 
is that it is not prescriptive. 
The result, he says, is that 


“we have ended up with a 
company that is self- 
propelled". 

Russia beckons 

The extent to which head- 
hunting firms have been 
penetrating the growing cen- 
tral and eastern European 
markets for executive 

recruitment is apparent in a 
report* published this week 
by the Economist Intelli- 
gence Unit The report, com- 
piled by Nancy Garrison 
Jenn, shows that Russia has 
the greatest potential in the 
region, forecast to grow by 
25 per cent in 1996. 

Hungary and the Czech 
Republic are now considered 
to have mature and sophisti- 
cated search markets, jointly 
worth between SlOm and 
$i2m a year. Headhunting in 
Poland is worth about Siam, 
with forecast growth of 20 
per cent in 1996. As the chart 
shows. H. Neumann of Aus- 
tria is the clear market- 
leader in the region with 


nine offices earning more 
than SIGm in net revenue in 
1995. Ward Howell, of the 
US, the pioneering firm in 
Moscow in 1993, has main- 
tained a leading position, in 
second place among the rev- 
enue earners in the region. 

The report estimates that 
headhunting worldwide is 
now a $5bn to S6bn busine s s. 


just under half of which in 
Europe- The 30 largest inter- 
national search firms had 
worldwide revenue of $1.6bn 
in 1995, 23 per cent more 
than in 1994. Their combined 
worldwide sales are expected 
to double by 200 0. 

‘Executive Search in Central 
and Eastern Europe, 
choosing and using a head- 
hunter. Nancy Garrison 
Jenn. is published by the 
Economist Intelligence Unit, 
15 Regent Street , London 
SWJY 4LR. id 0171 830 1007 
C or New York tel 212 554 
0600). price £165/3265. 


Top to headhunters in eastern Europe 

Europe by 


LeocSng executive seven Runs in central and eastern 
number of office* and net revenues 1905 „„ 

Net 



No of 
offices 

Central «. 
eastern 
Eropa 

World 


■ - A 9. •- 

■ . 9.0 

• >:3?=S 

Ward Howafl 

B 

ejr 

73.0 

Ifevfiw*. : ’-V 

. ■ • : . 7 . 

.eo- 


Amop 

7 

3.1 

120.7 

Ao 6otd. t y 

9 

9.9 

. ■»«* 

Egon .Zahndar 

A 

2.8 

146J3 

5 

£.0 

. 

Traraaoroh 

5 

1.7 

50.2 


"."V- 2 ' 

- T-S 

... Tfiin 

Spencer Stuart 

0 

15 - 

158.5 


-JSDUDDlitMMntaMwyMaflw wftch Hi m gmmg 

e m vmKm wymin'i nw o wrf m lonoan 


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sure you are taking the, 6ea* farcer advice, call us today, 
Ptea«e^rfepl>ooe Jemmy Gosperer Zo« lde vu 4171 T 
0073 or writ e to-16-18 New Bridge Street, London EC4V 
SMI. Pwu 0171 3533908 


BADENOCH tL CLARK 

recr ui t men t specialists 


Credit and Risk Analyst 


The Bank of Newr York has the following excellent 
opportunity for an experienced Credit and Risk Analyst 
Based in London within a small, focused^ team, the 
successful candidate wilJL undertake credit and risk 
analysis for a wide variety of European non-bank 
counterparties. 

Candidates mast have at least five years credit 
experience, be formally credit trained, educated to degree 
level and possess strong technical knowledge. A good 
understanding of derivative products, primarily currency 
options is required and knowledge of Global Custody 
risks would be an advantage. Good written and 
communication skills and the ability to liaise with 
Traders and Senior Management are also essential. 

Written applications only 
including foil curriculum vitae and 
current remuneration to: Maria 


LEADING INVESTMENT BANK 


CITY 


BUSINESS CONTROL REVIEW 


& EXCELLENT 


WUh business jotlvititrs spanning 41 countries and over 7000 
employees, this Croup enjoys a pre-eminent position within global 
bonking- As (coders In the development of croergtng markets, they have 
a significant market presence In Securities, Asset Management and 
Investment Banking. 

Excellent growth and exciting future prospects have created a 
number of opportunities to join a specialist team reporting directly 
to the Chief Executive. The team operates in a non-hlerarth ical. 
open and supportive environment where promotion Into bustness 
sectors Is encouraged. 

The successful candidate will be responsible for planning. 


conducting and ensuring effective conviction of nsk ha*ed operational 
reviews across the Croup You will initiate the process of change in a 
challenging and dynamic environment, ensuring that effective controls 
are in ptice to meet bustnesn needs. 

Your profile is likely to be one of tbe following: 

Managers - probably a qualified accountant with a minimum 
of five years within an audit, advisory or consultative capacity 
within banking. Specialist knowledge within Asset Management, 
Treasury, Investment Banking, Insurance or Retail Banking would 
be an advantage. 

Executives - recently or up io five years post qualified with a 


ROBERT WALTERS ASSOCIATES 


reputable Chartered Accountancy practice or Investment House, you will 
have {rained an exposure to die Investment Banking Sector through audit 
or advisory work. 

Both roles require a drive to succeed and strong inter- 
personal Skills. 

If you have the necessary qualities please contact David Heron or 
Mdud Quite at Robot Walters Associates on 0171 3933 or send a 

detailed CV staling current remuneration to 25 Bedford Street, London 
WC2E9HP. fax 0171 915 8714. 

E-ntail; <favhtbcpon*i Q bqt w ahcaicoai or mje h acLC Ui ta^robertwalteracoin. 
All applications win be treated In the strictest confidence. 


h v o 
5 ~ 


INDIO* 


NSW VO* 


AMS TERDAM 


SCUSSELS 


<• v„ D N t T 



THE 
BANKOF 
NEW 
TORK 


Gigli, Personnel Officer, The Bank 
of New York, 46 Berkeley Street, 
London. W1X 6AA. 

Equal Opportunity Employer 


Appointments 

Advertising 


appears in the UK 
edition every 
Monday, 
Wednesday & 
Thursday and in 
the International 
edition every 
Friday 
For further 
information 
please call: 
Dominic Knowlson 
+44 OL71 873 4015 


MCKmSFT 8c COMPANY is an international management consulting firm with 67 offices In 35 countries, serving the leaders of large organizations on matters 
of strategy, organization and operations. Our mission is twofold: to help our clients make positive, lasting and substantial improvements in their performance 
and to build a great Firm that is able to attract, develop, excite and retain exceptional people. 

McCnsey’s Pulp and Paper Practice is one of the industrial sectors within our firm. The practitioners bring a rich body of skills, resources and experience to 
tbe pulp and paper companies around the world. Tbe Pulp and Paper Research and Information Professionals from Sca n di na via. Brussels and Atlanta assist 
the consulting teams by collecting/analyzing information and conducting research. The Brussels location is now looking for a (m/0 


cT 

m 

Oi 

6 

o 

tj 

& 

KJl 

• H 

u 

s 


I** 


PULP AND PAPER. RESEARCHER 




The Pulp and Paper Researcher wifi handle research and information requests - generally requiring between one hour and a few days 
to complete - concerning all aspects of the industry chain from forest co converted paper products. 

The ideal candidate will have completed a university degree in economics or a related field, be between 25 and 30 years old. and have: 

• Stare of the art understandi n g of the paper industry dynamics and papermaking process. 

• Strong interest in collection, management and analysis of information. 

• Proven ability to synthesize information 

0 Excellent communication skills in English. French and German skills axe an asset. 

• Hands-on computer skills (spreadsheets, on-line information retrieval, fin an c ial analysis packages). 

• Quick and creative mind. 

• Willingness to take initiative and responsibility. 

• International orientation. 

if you fit this profile and you would like to apply, you are Invited to send your curriculum vitae before November IS. 1996 to 
Anne-Marie Matron. Recruiting Administrator - McXSnsey k Company, Inc. - avenue Louise 480, B 22, 1050 Brussels. 


Corporate Finance 
Executive 


3i Corporate Fnjanoe is the 3i Group's Corporate 
Finance advisory division, which specialises m 
mergers and acquisitions and provides Corporate 
France advice to the Group's investment division. 

3 i Corporate Finance is seeking to recruit an 
ambitious profession*! to join their expanding 
London team* 

This is an excellent opportunity for a 
commercially aspire Chartered Accountant or 
Solicitor keen to move into corporate financ* or 
for a candidate who ha* already obtained corporate 
finance experience and wishes to progress hw/her 

career- 

The successful candidate will work on 
variety of transactions in the public and private 
company arena- The executive will *0 

require sound commercial judgement. 


London 

negotiation and interpersonal skills combined with 
good technical expertise. Additionally candidates 
must also be able to demonstrate: 

• Excellent academic background, 2:1 degree or 
better from a leading university. . 

> The ability to liaise with entrepreneurial clients 
at a senior level. 

• Strong analytical, technical and communication 
skills. 

• Initiative, creativity and maturity. 

If you art a commercially minded and ambitious 
young executive wishing to progress your career 
you should contact either Annabel Carmichael or 
Paul Wilson on 0171 269 2318 or write eo them, 
enclosing a full curriculum vitae at Michael Page 
City, Page House, 39-41 Parker Street, London 
WC2B SLH- Fax: 0171 405 9649. 
Please quote reference 261906. 


Michael Page City 

Int— iarional Reertrfuagu CouwihmW 
v^^P»rf»F™Ato H»u^KoogStaWoro Sydney 


Corporate Finance - Lebanon & Levant 

INVESTMENT BANKER 

vi* IScirul. Lebanon 


S( 'om pel i I i\ e 


Ad outstanding investment banking opportunity with a pre-eminent financial institution. Our Bank is recognised 
for its SI billion capital base and experience spanning corporate and investment banking, private banking and a 
presence in major investment centres. We are seeking an individual to help build a Beirut based investment 
banking operation in private and public Issues of debt and equity products. The individual will enjoy the 
Challenges and rewards associated with an expanding operation in an exciting emerging Levant. 

The Position 

■ Secure and execute mandates for raising debt or equity capital, private placements and project financing 

■ Support the marketing and client development efforts of the Bank in Lebanon and tbe Levant 

■ Help attract and develop junior professionals to the team 

■ Assist with building a long term investment business 

The Requirements 

■ Personal and professional commitment to tbe evolving reforms and reconstruction of Lebanon, and a 
conviction favouring tbe growth of the Levant and die Mideast as an emerging market 

■ 3-4 years US or European experience at recognised investment tranks, and an MBA from a leading university 

■ Demonstrable track record with corporate finance transactions, debt or equity, or M&A 

■ Highly numerate, analytical, technology literate and transaction oriented 

■ Self starter with drive and ambition, and a desire to live in Lebanon 

■ Knowledge of French and Arabic an advantage 

Interested candidates should send their CV’s together with details of current compensation to: 

Box A5734, Financial Times, 

One Southwark Bridge, London SE1 9HL 





II 


FINANCIAL TIMES 


FRIDAY NOVEMBER I 1996 


Package to attract 
the best 



GE Capital 
Commercial Finance 


Business Origination Director 


Highly Influential new position with a mandate to build a significant business la Europe. GE Capital has 
assets of c. $135 billion worldwide aod Turnover of c. SJ.4 bilUoa. It is active in 26 different financial 
services businesses and European operations are a principal focas for rapid growth both by acquisition and 
organically. Its Commercial Finance business group aims to deploy Its highly snccessfbJ range of US 
products and services spanning asset-based and cash flow lending, capital markets placements, receivables 
and export Jutandng, and equity and debt Investing. The Group has an appetite flrr arranging major 
commercial financings both bilaterally and in syndication. This position will have access do very 

substantial resources. 

THE QUALIFICATIONS 

■ Outstanding, high achieving commercial finance 
professional with a distinguished business 
development record of asset-based financing in a 
blue-chip bank. - probably now at Director level. 

■ Authoritative origination and transaction experience 
In building a substantial book of commercial finance 
assets. Well - developed analytic and credit skills with 
relevant languages and European experience. 

■ Entrepreneurial, self- motivated and Imaginative 
ream player with stature, commercial focus and 
obiectivity. Able to represent GE Capital effectively In 
a broad range of transactions. 


THE ROLE 

■ PAL responsible to the MD international Division m 
the US for the origination and execution of 
Commercial Finance's business development 
programme throughout Europe. 

■ Targeting relevant public and private companies and 
leading derailed corporate lending negotiations 
principal to principal Recruiting and developing a 
small dedicated team of transactors. 

■ Forging strong relations both Internally and 
externally to identify opportunities and synergies for 
the Group as a whole. Developing complementary 
products and services. 


Leeds 01 19 2907774 
London 0171 493 1235 
Manchester 0161 499 1700 


Selector Europe 

Spencer Stuart 


Mr ITT ixyfy wtt fan aenlls m 
5»l»ranr Europe. UC IXISIOCL 

ii on rfai ii 


Package to attract the _ . 

l?„ t U s^& r Blabal Project & Structured Finance 



GE Capita / 
Europe 


Business Development Director 


GE Capital GPSCIs one of the largest providers of project and structured finance In the world. Its 
office (and Its satellite in Odhi) services activities in Europe, Middle East, Africa and Central Asia an t 
has recently made equity and debt Investments In S multi-billion energy, infrastructure end telecoms 
prefects within lie region. It now wishes tb appoint a top-flight professional to spearhead the 
development of opportunities across a broader product and project base. The group has a large 
appetite as a principal Investor and access to very substantial resources. 

THE QUALIFICATIONS 

■ First-class, experienced structured financier with 
relevant origination and transaction experience in 
the region. European language skills highly 
desirable. 

■ Excellent commercial and analytic skills, ideally 
with a broadly based exposure to mlecoms and 
infrastructure projects. Trip quality training and 
transaction experience whether from a developer, 
major Investment bank or boutique. 

■ High levels orinitialive and energy with the stature 
and style to represent GE Capital at the highest 
levels. Tenacious deal maker with appetite far a 
real challenge. 


THE ROLE 

■ Reporting to the Managing Director Gpsf in 
London with the remit to identify, structure and 
help close major transactions. 

■ Develop existing and new relationships with 
major operators and corporations to identify 
opportunities for equity and senior and 
subordinated debt Investments. 


Writing with a small dedicated team to build 
GPSF's profile and reputation within the region. 
Key contributor to strategy. 


Leeds OI 13 2307774 
London 0171 493 1238 
Manchester 0161 499 1700 


Sel ector Etiroj^e 

Spencer Mu. in 


Pleas rapty wUti tod deoil* ik 
S elector Europe, Ret noitiau. 


J 




INVESTMENT BANKING CREDIT RISK MANAGEMENT 


As one of the worlds leading and most prestigious Investment and Commercial Banks, our client has an enviable reputation for being at the forefront of product innovation and development, whilst maintaining the 
integrity of its highly valued credit culture. The Credit Risk Management function plays a vital role tn developing credit policy and portfolio management techniques, in addition to providing an overview of the Bank's 
group credit process. As part of its ongoing commitment and development of this key area, the Bank now seeks to make the following appointments: 


SENIOR ANALYST 

Responsibilities 

• Credit risk management of cash and derivative products; 

• Credit risk analysis of exotic and structured transactions; 

• Credit risk analysis of derivatives portfolios; 

• Analysing the effects of credit provisioning on derivatives 
exposure. 


ANALYST 

Responsibilities 

• Credit risk analysis of trading counterparties to include -funds, 
fund managers, brokers, dealers and Investment Banks; 

• Legal risk analysis of derivatives documentation; 


ANALYST OPERATIONS 

Responsibilities 

• Analysis of settlements channels for cash, securities and 
derivative instruments; 

• Credit risk analysis of both safe settlement and electronic 
banking payment channels; 


Development of credit policies for settlement risk. 


\ 


Co-ordination of credit policy for front office and credit risk 
management areas. 

It is envisaged that over one these positions mill develop to cover additional areas which will possibly include: the participation m the development of RAROC; evaluation of economic capital : and the analysis on a 
transaction/portfolio basis of emerging markets business. 

Candidates will be ambitious, career orientated University graduates , preferably with a maths or science degree, who will have gained 2-3 years relevant credit risk experience within an active player m the Investment 
Banking marketplace. If you feel ydu have the necessary skills and experience to contribute to this specialist group, and wish to play an important part within this Head Office function please contact, m strictest 
confidence, Sean Carr or Richard Lyons. 

Tel: 0171-588 3322 ^xrv%Tn ± Wamford Court 

29 Throgmorton St., 

London EC2N2AT 


Fax: 0171-628 2400 


j CARR-LYQNS 1 


Search & Selection Limited 


r 


EXCELLENT REMUNERATION PACKAGE 


BASED IN LAUSANNE. SWITZERLAND 



FISCAL AFFAIRS MANAGER 

THE COMPANY Philip Morris is the world's largest consumer packaged goods 
company. Our EEMA regional headquarters, based in Lausanne, oversees our 
growing cigarette business in the countries of EFTA, Central and Eastern Europe, 
the Middle East and Africa. 

THE POSITION Working independently, you will provide back-up for die Director 
Economic and Fiscal Affairs in the development and support of EEMA taxation 
objectives as applied in an FMCG environment. This will essentially involve providing 
Management with expertise on import/customs duties, excise taxes and trade-related 
issues, developing the relevant taxation strategies, and the presentation of recom- 
mendations. 

THE PERSON A holder of an economics or other business-related degree, ybu have 
some 8-10 years relevant experience, a few years of which have been spent in a 
similar position. In addition, you possess excellent analytical and communication 
skills, together with the ability to work independently and to synthesize complex 
issues. Fluent in English (French or a Slavic language would be an asset), you are 
prepared to travel. 

If you feel that you match our profile and are interested in joining this dynamic team 
of professionals, please reply in the stnetest confidence with full ojmcuJum vitae, . 
covering letter and details of current remuneration package, attaching^ brief written 
description of an event or incident in relation to a specified task or process in your 
professional life where you feel you performed very wed and the outcome was 
successful. Send your application to: 


PHILIP MORRIS 

EEMA REGION 


PHILIP MORRI5 EUROPE SA - EEMA REGION 
RESOURCING CENTRE REF. NO. 17.10.96 AMS 

AVENUE DE COUR 107 
PO BOX 1171 

1001 LAUSANNE, SWITZERLAND 


Successful Careers Worldwide Closing date for receipt of applications is 1 1 November 1 996 


CJA 


RECRUITMENT CONSULTANTS GROUP 

2 London Walt Buildings, London Wall, London EC2M 5PP 
Tel: 0171-588 3588 or 0171-588 3576 
Fax No. 0171-256 8501 


Outstanding opportunities at the forefront of new risk financing developments arising from the 
convergence of insurance and banking. Developing and marketing products and innovative solutions 

through sophisticated risk advisory services. 



CJA 


CONSULTANTS 

CAPITAL MARKETS RISK FINANCING 


£45,000-£80 y 000 + SIGNIFICANT 
PROFIT RELATED BONUS 


LONDON 

NEW YORK AND HAMBURG 

THE OPPORTUNITY TO JOIN A CONSULTANCY PARTNERSHIP RECENTLY FORMED WITHIN A 

GLOBAL INSURANCE GROUP 

We invite applications from graduates who will be professionally qualified and/or with a second degree, who must 
have had at least S years’ financial sector experience within the insurance industry, a bank or corporate treasury in 
derivatives or new product development. The selected candidates, who will report to a senior director and be part 
of a highly qualified and motivated professional team, will be responsible for providing a specialist consulting service 
no major industrial, commercial and insurance clients by developing and marketing new risk financing products. 
Significant overseas travel should be expected. Essential qualities are numeracy, strong analytical skills plus the drive 
and personality to make professional presentations at board level and the creative flair to develop client 
relationships through a consultative approach. Initial salary negotiable in the range £45,000 - £80.000. plus significant 
profit related bonus, car, non-contributory pension, life assurance. PHI, private medical cover - for candidates with 
particularly relevant experience a higher base salary may be paid. Applications in strict confidence under 
reference C5854/FT to the Managing Director, CJA 


Appointments Advertising 


appears in the UK edition every Monday, Wednesday & Thursday and in the International edition every Friday 
For further Information please call: Robert Hunt on +44 0171 4095 


Equity Markets Editor 


Leading Investment Bank 


Excellent Package + Bonus 


City 


Opportunity for an equity markets’ editor or financial journalist to join 
a major stockbroker, part of a leading UK investment banking group. 


THE COMPANY 

♦ Highly -effective, prestigious broker, one of the 
largest equity houses globally. 

♦ Highly rated in UK and international equity 
research. 

♦ Strong commitment to research. Reputation for 
quality and depth of cover. 

THE POSITION 

♦ Senior member of pan-European editorial team. 

♦ Close contact with analysts. Edit written 
investment research ideas for external and 
internal use. 


♦ Input into development of written product and 
research marketing and distribution. 

QUALIFICATIONS 

♦ Successful editor either within leading broker or 
experience in financial journalism. Alternatively, 
an equity analyst. 

♦ Thorough and rigorous analytical mind. Able to 
write in depth. 

♦ Team player, ambitious for success. 

♦ Commercially aware and good communicator. 


Please send full cv, stating salary, ref FS6I0A2, to NBS, 10 Arthur Street, London EC4R 9AY 



NB SELECTION LTD 
j BNB Resources pic oompmy 


NBS 


dry 0171 423 1520 • London 0171 493 6392 
Aberdee n ■ Bir ming ha m • Bristol • City 
Edinburgh • Glasgow • Leeds • London 
Manchester • Slough * Madrid ■ Paris 


Head of Derivatives 
Securities Operations 


AM ERIC AN 
EXPRESS 
BANK 


American Express Bank Lid is a 
major US bank u>itb a presence 
in 36 countries worldwide. We 
are a trusted partner for wealthy 
entrepreneurs and local financial 
service institutions. Our principal 
businesses are correspondent, 
commercial and private banking 
and consumer fi na n c ial sen-ices. 

American Express Bank Ltd is an 
Equal Opportunities employer. 


Poole, Do us ft 


American Express Bank Ltd is recruiting a Head of Derivatives and Securities Operations for 
its regional headquarters based in Poole, Dorset. This centre provides operational support to 
AEB offices worldwide for business areas including treasury, securities and derivatives. 

This position carries significant responsibility and reports directly to the Poole Operations 
Head. It is intended due this individual will play a key role in the continuing development of 
global support services for treasury, securities and derivatives. 

Candidates will have at least 10 years experience of treasury, global derivatives and securities 
operations gained within International Banking. Experience should include the management 
of an operations ream with particular emphasis on people management, training and 
development, and teamwork. Additionally, applicants must demonstrate a proven track 
record in change management and systems development, and be hunilar with a control 
orientated environment 

The remuneration offered is highly competitive, reflecting the importance of this position 
within the bank, and includes generous relocation assistance. 

Inte r es t ed applicants should write with their cv, in confidence, to Helen Higher, Managing 
Consultant, ar the address below. 


Jonathan Wren & Co Limited, Financial Recruitment Consultants, No. I New Street, London EC2M 4TP 
Telephone 0171 623 1266 Facsimile 0171 626 5257 



P3028S 







FINANCIAL TIMES FRIDAY NOVEMBER I 


Debt Origination Manager - Africa 


Excelijbot.Package 

Our client, a wen -respected Global- Bank with extensive 
interests m emsgqg nartets, is seeking an outstanding 
indivitfcal to strengthen their coverage of the Afiican region. 

Woddug as a sauor member of a specialist fee 
soccessfiU applicant wiD be instramental in btriMing long tenn 
relationships with a range of Aincan Sovereign, Corporate and 
Institutional clients. The position demands an iiwkp* 
understanding of investment banking and candidates with a post 
graduate qualification in either International Banking and 
Finance or a related discipline would be of particnlar inoresr. 


London Based 

C a ndidates should have at least five years experience of 
dealing in tie region and possess an extensive network of senior 
contacts within the African financial community. A strong 
understanding of local business practices and regional cultures 
are also considered to be important attributes. 

Interested candidates are invited to submit their Curriculum 
Vitae to Andrew Warfnmon, Director; MW Selection. 
5 St Mm’s Lane, London, EC1M 4BH, or call him for a 
confidential discussion on Telephone; 0171 250 4710, 
Facsimile: 0171 251 464$. 


MW 


► 


Investment Banking 
in Emerging Markets 


Highly Attractive Salary + Bonus 


We represent a rapidly expanding international London based bank with an established presence 
in Western and Emerging Markets. 

Due to its continued success, the organisation is looking to expand its Investment Banking team 
with the appointment of a Senior Market professional. Suitable candidates will possess a degree 
possibly coupled with an MBA and have at least three to five years experience in all aspects of 
debt issuance. Ideally exposure would encompass Emerging Market debt but this is not 
essential. You should, however, be able to demonstrate an excellent track record of originating, 
structuring, documenting and distributing banking and corporate debt issues. 

The ideal candidate will have exceptional presentational skills and be willing to travel to secure 
and complete mandates. This is an outstanding opportunity to play an integral part in the 
development of a highly successful business. 

For a confidential discussion please contact David Reynolds > 

Tel: 0171 236 2400, Fax : 0171 236 0316 or apply in writing to 
Sheffield-Haworth Limited, Prince Rupert House. 64 Queen Street, London EC4R 1AD. 

SHEFFIELD-HAWORTH 

Consultants in Search and Selection i 55 »■■■■■■— 


Chief Dealer FX Options 


SIX FIGURE BASE 


LONDON 


A challenging, high' profile role offering the opportunity to establish and manage the FX Option trading activities of a leading 
bank, covering the European time zone as part of the Global Operation. 

Vbu will be joining an established and successful Treasury which has a strong reputation in trading and enjoys excellent 
relationships with the corporate community. 


The positron 

• Set up and manage an Options Trading Desk in a dynamic 
environment. 

• Quote major and some minor currencies on an Interbank 
bash and provide prices for customers. 

• Develop the company's profile in OTC Options through 
building relationships and market making. 

• Promoting OTC options products within the organisation. 


The Requirements 

• Proven trade record with a minimum of 5 years experience 
in OTC Currency Options trading. 

• Experience in a wide range of currencies for vanilla and 
exotic options. 

• Ability to work in conjunction with the salespeople and 
offer added value on Option products. 

• Experience of setting up a desk would be a distinct 
advantage. 


Please contact Jmes And e rso n in the st r ictest confidence. 


Search and Selection, 2 Austin Friars, London EC2N 2HE 
Tefc 01 71 -972-01 50, Fax: 0171 -972-01 5T/2- BmaiL- search@aiicheUngelo.co.uk 


BARING ASSET MANAGEMENT 


Quantitative specialists 




Excellent Salary & Benefits 


- Baring Asset Management is part of the ING Group and provides a full spectrum of 
investment and administration services for an' international client base. 

Two new positions have arisen for quantitative experts to work, in out investment 

teams. These tales are central to our investqfaht process. 

' ' /• & ' • !.• ?■*. 

QUANTITATIVE MANAGER 

Your brief adfLbe'jcp build/' dj^ op and manage the qt^brative process within our 
European iTrfcstrnen c.'^eam . WoAhag .closely with the resr of cbd- seam; you will take 
responsibility management of European equit&*nd QvtiSce its effective 

imple3iae»xadoten^ari^>c investment piOCesa Ar 3fea« three yeW quantitative management 
of equities is iwjgridr ' j ‘ 

QUANTIT^tlVE - ANALYST?" ^ 

You will join an established, small successful Japanese quantitative team in order to 
develop further th?<ht|(es6pent screening process. Experience M. Equities would be an 
advantage but is not «ss^{|aL The ability t© . work with, the minimum of supervision and 
ro formulare and reseatah^e^kjtas is essendaL • __ j A , 

For both positions^ "a -good degree in either 

mathematics, oompuang,. ; bccHaa^ lelacedsubjecc. - , . . > 

To apply, please write with your CV to Lindsay Armstrong, Recruitment Coordinator, 
Rada Recruitment Communications Ltd, 195 Euston Road, London NW1 2BN. 
Applications should be received by Wednesday, November 15th and all replies will be 

MembaoTING Giwi,' 


Fixed Interest UK Business Manager 

M«corv Asset Mangemex* Grottp pic has gpnown steadily over the past 40 years to become Britain’s 

over £80 under tnarmgetaeta, 

. _r ******** at the Fixed Interest Division, reflected by > £ 1 ? biQum increase far 

, n lean, leader, tbi, (ration will primarily involve all internal and external business 

-idrin *e rnan by nndemandins and addraing cBent 
• Wtaktaf^bTtod^wem and marketing yecmHat. to ensure that the mam', value 

and accurately c ommuni cated. 


pioposttioft to fatty and acctitaieey 

- . ,, mnmt Kave mbtartfal experience and under standing of fixed Interest 

idte/be wfll have had some exposure to fund management and a 

minimum of five years financial maricet eaqierience. 


^S^rSanennlng and < hnenraonal s**, vi* *s *d*y - , —ricarn edecdvely 
- an MBA wodld be pttferted, and Ife aUli* ^ 

team boM? and benefits offered will be extremely competitive and 

The basic salary pacKa ge, ppmw 

com ,iu>n K ua ■ , . _ cwfcca at BBM Selection quoarg Ref: 412 and enclose a fuR CV that include* 

Interested maScrS- AB appUardana win be treated in the: strictest confidents. 

e # mill Teb 0171.248 3653 

76 , Wading Street, |||fM Fax: 0171-248 2814 

London HKIH E-mafl: 4l2@bbnuco.uk 

EC4M9BJ 


PrfrchW Aerospace, the parent of FahchM Aircraft in San 
Antonio, Texas, and Domter Luftbhrt in Munich, Gsmtany. 
seeks three finance professtonafe. AS posffions are tooted to 
San Antonio. 

FakchlW Aerospace faces many exerting chaBenges as Kbits- 
grates two 


» faces many exerti _ 

grates two leading regional aircraft maniActufeaTandl brings to 
maiket Iraportsnt new aircraft products and services. We ere 
searching far (ndivtouab who wart to be part at the development 
of a vital new aircraft company. 

Vice President and Treasurer 

i Reporting to the CNeSRnancitd Officer, twspcstoco Is respon- 
sne for ttie integration of flnftncbl activities between the two 
manufacturing and service sites, wfth paitietieT emphasis on 
international tax, accouiUng and foreign exchange. This funo- 
ttm wfl contribute to an active corporate finance program. 

The successful cendkfete will possess excelent presentation 
and communicafion skfls, five to ten years of progressive 
Wamgflontiresponsib Rte s.pwtorahtywghmaniitatrti5ingen- 
terprlses, and wmnmess to travel frequently. Facffity 
man tonguage wotid be a plus. 

Product Finance Associate 

ResponsUe tor the support of a wkto range of sales finance 
activities Involving Fain^ and Domiw aircraft, this ptMfflonwffl 
report to the Director of Sales Ftancein San Antonia Activities 
wa fndude structuring, negodafcg and documenfing aircraft 
leesas; monitoring porttofc activity and syndtoafions. 

The successfid appficant wB have axcafem presentadon and 
communicaBon sUe, Hires to five years ahoaft finance experi- 
ence, nctudtog tutnprops, and a knowledge of asset-based 
and other akcrzdi finance structures. 

Treasury Associate 

This posBon wR partidpete in a diverse range of treasury 
activities undertaken by the CFO and Treasurers of the com- 
peny. The finance group estab&shes budgeting and planring 
procedures tor the cofTpeny, prepares frequent reports for 
management, stockholders and financial institutions and pur- 
sues capital markets transactions. Thfs position wa support 
these, and other important thanda) activffias. 

Tba i successful appficant wB possess a graduate degree in 
businesa or e related field, three to five years experience In 
manufacturing and the aUKy to work ancMy as pert of a 
team. 

Ph— taw toir— tlci Director ofH e cr uI hnai^RriraWld 
Aenxpece. H wwfl e Bou rteePap ete ea wL P^.Box 790490. 
Sen Antonio, TX 78279-0490. te No. 2KM24-M76. EOE 


UK EQUITY RESEARCH 

MAJOR REGIONAL FUND 

MANAGEMENT GROUP 

Tilney & Co Is one of the UK's oldest and largest 
independent fund managers and stockbrokers, with 
client funds totalling over £4 billion. Following 
our MBO in 1993 we have no outside shareholders. 
We are growing rapidly and now operate from 
• 10 offices with over 260 staff. 

We believe that high quality, objective, 
in-house research is an essential element of our 
success and we devote considerable resources to 
this area of our operations. 

Our Research Team has an excellent reputation 
for the quality of its product and we are now keen 
to expand it further, welcoming applications from 
experienced UK equity analysts. Following a 
re- allocation of sector responsibilities wtthin the 
existing Team we are particularly looking to expand 
coverage in Financials and in a range of Cyclical 
Industrials but specialists in other areas need not 
be deterred from applying. The Research Team is 
based in our Liverpool Head Office, enjoying the 
many benefits of this North Western location. 

If you would like to discuss what we are 
looking for do feel free 1o call Peter Bickley, 
Research Director, on 0151 236 6000. 

Applications, with full CV should be sent 
to him at Tilney & Co, Royal Liver Building, 
Pier Head, Liverpool L3 1NY. 


TILNEY &. CO 

aocfcbnMdraa«nd Fund 
MmQanwnt tinea 1830 


APPOINTMENTS 

WANTED 


Up to 2 years 
experience and/or 
M.Sc/Ph-D. Strong IT 
skills (C++/Unix etc). ' 

Please contact 
Stuart Norbury 
TV1: 0171 242 9000 

Fax; 0171 405 6434 
e-mail: 

alexmannpterfi^dlaLpipex. 
OOmAMP (fee Cobb) 


INTERNATIONAL 
PUBLIC RELATIONS 
European aflffiate of a us- 
based Memahonal pitoSc 
relations ffcm opentog Dubfin 
offioe seeks highly motivated 
Mridual, experienced to pub&c 
reiafions, issue campaigns, 
TACIS, social marketing. 
E.U. dizenship required. 
Fax CVAattar of Merest to: 
Human Resources Dhsctor, 
+1-215-735-5454 


BANKING/SUPERVISION ! 
CONSULTANTS ! 
bel assignments for 
Professionals urithwgNrienceki 

Bank Supervision. Restructuring, 
Crecft, Workout, Benk 
Accounting, moperetiens, AIM, 
Strate^opfonring, Trade 
finance, FDIGtOCCIFRB. Sand 
CVtiKPO Box 18574, 
Wa shing to n. DC 20041 USA 


TOADER 


London 

Our cB«u, a prestiKiotre I'S investment bank, is looking for 

an experienced Trader to work in the European Emerging 

Markets group. 

The fallowing attributes are essential: 

• Proven track record in maiket making 

• Proven academic excellence, including e good Masters 
degree in Business with a concentration on International 
Badness Transaction Law 

• Ai least 2 years' experience in sales & trading and 
investment banking in the Emerging Markets group of a 
leading investment bank with particular emphasis on 
Russian markets 

• First hand knowledge of the former Soviet Union gained by 
extended periods of tone spent there - at least 6 years 

• Fluency in English and Russian 

• High energy level and ability to cope in a highly pressurised 
environment 

• Proven interpersonal stalls. 

To apply, please send your CV, U>: Alastair Lyon. Confidential 

Reply HanriKng Service. Re£ 562. Associates in Advertising. 

5 St John’s Lane. London EClM 4BH. 

Your application iriB only be forwarded to thin client, but please 

indicate arty organisations to whom your details should not be sent 


Asso 


RTISING 


O 


Macquarie Bank 


Permanent Part-time Lawyer 

£Neg. 

Compliance role 
London 

Macquarie Bank Limited i* ibc ooly substantial. Australian-owned investment 
bank. The London branch of Macquarie Bank operates in foreign exchange, 
base metals, structured finance and equities. Macquarie Batik is seeking to 
appoint a lawyer to iis London branch, in a permanent part-time capacity, a 
position which will require a commitment of aioond 3 days per week. 

The Pothion: The role involves responsibility for all legal and policy 
compliance matters in the Loudon office - c o nstan t monitoring of (he Bank’s 
activities. liaison and reporting to the Sydney-baaed Compliance (earn, 
developing and implementing policies and procedures as requited. 

The Person: You will be a lawyer with 3-4 years’ e xp er i ence gained within a 
genera) corporate or banking law environment. Knowledge of the general 
regulatory envircronenL is essoitial and direct compliance experience would be 
considered on advantage but not esaentiaL 

This b an Ideal opportunity Air a person looting to continue in, or return 
to, the workforce on a part-time bwk 

ff you are interested in pursuing this excellent opportunity, please forward 
yotw application to: 

Peter Grimsbaw 
Manager, Legal A Compliance 
Macquarie Bank Untiled 

9th Floor, Alban Gate ] 

125 London Wall , 

LONDON EC2Y 5 AS 

Bernstein & Co. (suisse) s.a. 

INTERNATIONAL FUTURES A OPTIONS BROKERS 
Sects highly motivated sates people for oar options division 

QuatificatioBS needed: 

• V— irg pr ir ady employed in me —le» dtvtd— In a bra luri i g o company 
■ Yaw art vary toccata la your promt pocideo ' 


• Yea mewflMag taidaemaabnad 
Job tfiacriptiom 

Sale ef financial servicca oy pdana to napanw ricaatad al ever At world 
We offer yon: 

- A rakr j w it h a po tenti al of at hart! IOOjOOO pec year based on 1004^ 

rnaiwlnun 

• Area— da tinaa la toapng apa rt mc ali k dat heart of C an e r a 

If yea malch this profflo, phase a*l or (as year appgmiioa A CV tm 

Bernstein & Co. (suisse) s.a. 

RUT Dll MONT-KLAffC 4 » CK-1201 GENEVA - SWITZERLAND 
PBONEi (+41) 22 »09 <000 • FAXi (+41) 22 909 SOSO 


Senior Spot 
Foreign Exchange 
Broker 

required to work with established 
team of Swiss currency brokers. 
Applicants should be able to speak 
fluent Swiss/ German with, a 
minimum of 5 years market 
experience. 

Write to Box A5732, Financial Times, 
One Southwark Bridge, 
London SE1 9HL 












If you believe you have the right background and experience to fill the 
above posts then call Tom Delves, Head of Information Services 
Division on (9662) 6613412 (direct) (9662) 6608820 ext. 643 or fax 
your detailed CV on (9662) 6608820 ext. 160 or (9662) 6605304. 


accountancy appointments 


FINANCE DIRECTOR 


COMMERCIAL ROLE - MARKET LEADING INDUSTRIAL LEASING 


MIDLANDS 


• £70 million turnover subsidiary of FTSE 
mid 250 pic. Highly profitable market 
leader in a mature and competitive, 
marketplace. 

• Growth by acquisition is a fundamental 
dimension of the company's strategy. It 
therefore needs a Finance Director who 
will actively support this development 
whilst maintaining effective control and 
service standards. 

• Responsible for motivating a team of 50 
to achieve high levels of service to 
decentralised business units, along with 
effective and timely reporting to Group. 


PWaae apply to writing quoting referen ce 1263 
wttb Am areer and alary deeds to: 

Mu Mumby 

TUT-lrj- lu-n_1 Ii ti Inn t Imfrui 

wrmcncw xkcuoq unaicc 
1 1 Hfll Street. Loodoa W1X S8B 
TfcL 0171 290 2043 
ht«pV/Www^o«XO.uk/wtiitcbcad 


c.J£6 0,000 + SUBSTANTIAL BENEFITS 


• Graduate, qualified accountant, aged late 
30s, ideally with leasing experience in a 
strong service orientated culture. 
International experience could be useful, 
although initial focus will be UK. 

• Hands-on, energetic and demanding high 
standards. The role calls for commercial 
focus, individual commitment and directness, 
along with flexibility to contribute to 
acquisitions and other planned developments. 

• Very much an influential role in the 
development of the company strategy, die 
scope for career advancement in the 
company and Group is considerable. 


Whitehead 

S £ L E C T ! 0 .V 


1 


in global capital markets. 


Friffl^lhihufihts and 


.4-‘£v-A ' ' 


ways 


lIMfc Banking; 

wi n ni ng mor w amt rig 

work among the world 
confidently expect u£( 


A*. V.: 

«nc«l in ari tuti on*. Indeed, we V 
■efingjp urjfe 'of pt ofewiihil 


services to dna H/youfce wandermg.- 

bow can be re.sore abom the fazut^ you ooed to T - 
mdbi nwi what Wredoingin tbe hare and now. > £ 

% ivmilii— knowledge of global < a pin lai ui i l» < « i 
and c o naoha na y expertise m one nttpinj and swkmfcs s' '• 
*"**** capability — up fryfoemves timuit 

nmj» Of • 1721)0 wjwnAin. H l f iiml fcty t hou gh jft rflf 

reaOj increases our dkm. Oar refraftingty open - * 
approach to eoasatting does array noth, tbe mystique o£. L - 
“the expert” and ■■<»! "* gdnh fl q i ,w^ 

c «m«h eBBbh to the cnato nt^.^^y onridejeal and, ^ 

dranoostraMevahiefor money. remits, not ' * 

** AwwT n. cfoy wMj 

until we have delivered what we promised. ' ‘ 

A steady flow of important new business means 
that we need more experienced practitioners who are ; 

Mpr tft ltmve fmm a l milfKon.1 wmmlling fir m Of • 


bjttfcjnjr environment to the fresh th i nking and winning 
wajarfIBM. Tou xnnst have two to five yean’ experience 
of large-scale projects within the international capital 
aaa An ta sector. A sound understanding of the 
corapbadiiaa of time msAots is essential, i ncludin g 
operational infrastructures, settlements, trade su p p o r t, 
transaction processing, and risk analysis & man a g ement. 
'fen mnut alio be prepared to travel widely within Europe 
in tin causae of your weak. 

.. SlTiw and twtefitaare deagnod to attract jxcfeasiooai 
of the Irighaw quality. Unfibe traditional 


hie rarchy . we“can promote good people as quiddy as their 
g ^TMwri . awl ijau S B . Plans write Vfitfa a fall 

fr^ thf adviang «i these app ointtn l eDia : 


Rou (B71-248 281A,fTaase. quote rtf: 

CBM is an equal-opportmuty eujployen 

Ihe HBH homqjage cm be found an the Intern* at 
httpJhmmBJb*njCom 


Solutions for a amdl planet 


ACCOUNTANCY APPOINTMENTS 


Chief Financial Officer 


London 


Six figure package 


Due to the expansion in size and complexity of itsXIK subadiary, our client, a major U.S. investment hank 
is seeking a Head of Finance to redesign and relocate its tjj£. financial, accounting a&d' regj&lory 
operations from New York to London. • . 

Reporting directly to tbe Controller in New York, die initial task will involve extensive liaison ^Jb. die 
present inr.irmhent, with some travel to New York. Responsibilities will include accounting, fax and 
regulatory functions fbrthe company’s UK-’ affiliate. ^ | *-- - ■ •" 

Candidates must have proven organisational and management skills, .with the ability to-grow .and develop 
the role as foe bank expands its European operations. Candidates will be qualified acco un t ant ^, with at least 
five years proven senior management experience within foe securities arm of an investment bank or, 
alternatively the financial services division of a leading international accountancy firm. 

A thorough understanding of derivatives and capital markets products combined with a sound knowledge of 
SFA and regulatory reporting are essential requisites for this challenging ^and exciting role. ' 

Interested candidates should send or fox their Curricula Vitae, stating current remuneration package, to Carol 
Jardine, Principal, Jazdine Kelso, 53 Shepherds Hill, London N6 5QP. Fax: 0181-341-4463. Interviews will be 
held in our Central London offices. Quote reference number JK0031 [■ 


• Jardine Kelso 


Finance Director 


TELFORD, SHROPSHIRE 


Chequer Foods Limited carries on business as processing 
manufacturers of convenience foods for the fast food, 
catering and vending industries. It is part of the Autobar 
Federation which is a Pan-European organisation 
comprising over SO companies. 

An exceptional Finance Director is now sought to assume 
day to day control of the financial management function 
and to act as a key member of the management team on 
the formulation of overall strategic policy. Reporting to 
the Managing Director, the principal tasks will be to 
oversee and review the preparation of ma n ag em ent and 
statutory accounts, initiate and manage new technology 
improvements, act as tbe principal point of contact on 
financial issues with professional advisers and provide 
assistance to tbe Board on the financial implications of 
commercial transactions, including acquisitions. 

Approp ri ate candidates wiP probably be in tbe age range 

35*45 and of graduate calibre with a recognised 
accountancy qualification. It is essential , to demonstrate 






Chcqaer Foods Limited 


EXCELLENT REMUNERATION 


several years* experience as a Financial Director in a 
manufacturing environment (either a stand-alone 
company or a division of a major group) with exposure to 
standard costing issues. IT literacy is very important. A 
knowledge of European languages, particularly German 
and French, would be very usefuL The appointee will be 
an inspirational team leader and an approachable 
individual who can relate to, and who seeks the views of, 
operational staff. 

An attractive salary packa^y will be offered inc lu di ng 
substantial bonus potential and a quality. . can 
Opportunities for further career development within the 
European group are excellent 

Please write, in con fide ace, with full ca reer and salary 
details to Geoffrey Mather, MSL International Limited, 
32 Ayforook Street, London W1M3JL Please quote ret 
60995. 

Interviews w01 be held in London and the West Midlands. 


FINANCE DIRECTOR 


MAJOR INTERNATIONAL GROUP 


WEST MIDLANDS 


• O pp ort un ity for an experienced finance 
professional to work closely with a recent ly 
appointed Main Board Director to build on the 
growth strategy of a £300 million plus turnover 
business of a major int ern a t i o nal group. 

• The business comprises a number of 
companies around the world, with the centre of 
gravity in the USA pursuing global expansion 
plans in the manufacniring and selling of 
equipment to nrulti-natiohaf drinks and hst food 
c omp a n ie s . 

• Key tasks will include, the provision, of a 
comprehensive financial service for a global 
business, tbe ongoing development of financ i al 
co-ordinatfon Inducting the development Of 
i nte g rated IT systems and the c o nt rib ution to .. 


deac *PS*f in witting qncelng reference 12S? 
wkh foil c aree r and nhry d ctilft to: - 




TO £75,000 + BONUS. 


business development including M&A. Significant 
International travel will be necessary. 

• Probably 40-50, qualified accountant with • 
broad co mm ercial experience In the 
manufacniring sector International experience is 
important, particularly in the USA 

• Demonstrable success in le adi ng strategic IT 
projects would bc an asset, as would exposure to 
international M&A activities. Operating 
experience in both, large and amaH. company 
environments would be preferable 

• Wdtdeweioped inOocaciag skills are vital in a 
business entente which has been highly devolved. 
Determined buit diplo matic character Ability to 
opepue independently. Willing to invest 5+ years 
ih'S^senior position within a fa yhrwiwg and. 

(-Tp a ty<lng nwifat * 



iWmwim 


Whitehead 

StLcCTIO N 


1 


C'-ASCG tV ? r ■; Mir.in: ‘.. t* - 
■ii.:! C: 1 1 O' -I 




Finance Director 


International Marketing Services 


Jeddah/ 
Saudi Arabia 

US$56,000 plus 
■ expatriate 
package 




KINGSTON 

SMITH 


Our client is a British-Managed offshore- 
bssed marketing services group with a 
multinational client base^ c im et Ui y ope ratin g 
on the Arabian Peninsula and with 
amadous expansion plans in place. Growth 
has been sixfold in its first three ye ar s. 

A Qualified Accountant with experience in 

the industry sector and with exposure to 
international business (preferably in the 
Middle Hast) is required to join the 
Expatriate Senior Management Team as fee 
fiist Hnance Director. The main tasks will be 
to assist in foe restructuring into separate 
companies, supervise all accounting matters, 
set up and implement all relevant cost 
ccmirob and systems, take responsibility for 
g e ner a l admurisfaatkun aftfl; in summary,. 
es ta bli s h the necessary ope ra ti on al financial 


structure which will enable the Group to 


This wifi require a stable, mature 
personality (not necessarily in years) with 
i mpeccab le professional standards, an 

entrepreneurial ability, strong personal 
skills in dealing with people of various 
cultural backgrounds and foe desire to 
forge a career in this environment This is 

not a contract posting. 

ThepadagevriU include a tax-free salary of 
US$56,000, family housing, medical _ 

™surance, car and a return flight annually. 
Resumes only, pleetsq, to: John West 
Kingston Smith Executive Selection, . 

2 Dryden Street London WC2E9NA.. . 
Fax:0171-240 0723. Vv 

^ ^0013l3550©Computerve.Cbm f : 










a* 



FINANCIAL TIMES 


fridav November i 1996 


v 


*nd 


SENIOR INTERNAL AUDITOR 


BRUSSELS 


AGE 26-29 


oore Corporation is a global leader in delivering Information handling ptodixzTsnd services that 
create efficiency and eompeiidveness for owomers. Founded in JB82, Moore has ipproxtaarefy 

19,000 employees and over 100 tru n ufa rtu nng facilities serving cusiomeis to SO countries with 
aimuai sales of USSZ6 billion. 

Vrthln the cotpocne audit services the successful candidate wiD report to the Corporate Internal 
Audit Manager. BcspoDsMtoss will indude: 

planning, executing and reporting on financial/ operational audits at mainly European 


production and sales units; 

• providing, rccomraendatioos to the management in order to Increase the operating efficiency 
and effectiveness of procedures; 

• liaising with external auditors and wfth local, divisional area and corporate management. 

The Ideal candidate will be a qualified Accountant rCPA, ACA. RA or equivalent with ar least 
four years experience in a Big Six firm. Fluency in English and a good command of at least a 
second European language is an asset. He/ she will have strong interpersonal wftb an analytical 


ROBERT WALTERS ASSOCIATES 


mind and be able to work iixk’pcndeady The portion mil involve approximately 5ti per cent 
mtemauona) Bal'd. 

For dtis duliengtng pcc.it km, our client offers an mtetxsong .caiaiy package including a 
number of fringe benefit* as well j> exemng opportunities within an internal tuixil nmup 

Interested applicants cun contact Christian Smets on telephone 00.42 2 511 66 88, or send him 
ihetr detailed curriculum v iue at Robert tTatten Associates. Avenue Louise 66 box low Pnneh. 
Belgium. tn 0052 2 51 1 99 69. E-mail. ftniM Ww tc B v rallM.com 



L ° N s o N 


Did* 


AMSTEtDAM 


■ U S » S 1 t 


SYDNEY 


No. FS30091 


KLEIN !■ TON 


ft 



er 


c. £100,000 package 
+ benefits 


Blue-Chip Standee Business 


East Anglia 


Finance Director 


Ante opportunity to join a profitable, high profile am t Innovative business with an inherent market 
capitalisation In the region of ElOO million which is part of a large quoted groap embarked oa 
diversification. Condoned expansion and a challenging strategy to grow both organically and by 
acquisition requires a highly ambitious finance professional to support the Chief Executive in ail 
aspects of strategy and operations. 


THE ROLE 

■ Acting as a sounding board to the Chief Executive, 
setting strategy and evaluating the ongoing 
performance of a diverse portfolio or high 
potential start-ups, jvs and recent acquisitions 


initiating, negotiating and delivering a range of 
acquisitions, dealing directly with principals and 
managing advisors. .“ 


Enhancing the financial .management and IT 
infrastructure to support planned rapid growth, 
providing guidance to functional reports In the 
operating companies. 


THE QUALIFICATIONS 

■ Graduate ACA/ MBA, aged early 30s+ with first- 
class financial management, modelling and 
corporate development experience from a blue- 
chip, fast-moving business. 

■ Challenging yet diplomatic style. Able to respond 
quickly and assimilate data promptly to generate 
imaginative business solutions, capable of and 
keen to encourage initiative whilst maintaining 
tight financial control. 

■ Highly commercial with superior communication 
skills. Excellent staff and project management 
s kills . Effective in dynamic, technology-driven 
cultures and able to progress further. 


Leeds Ol 13 3307774 
London 0171 49S 1238 
Manchester Q 1 61 499 1700 


c. £30,000 package 
+ options + benefits 


International Manufacturing 
Group 


Midlands 


| Head of Corporate Finance/Treasury 


Key role at the heart of an acquisitive and highly profitable £700 minian + turnover UK pic with an 
enviable growth record, weU-balanced international profile and a dominant position In each of its chosen 
niche markets. Powerful balance sheet and strong City support underpin a well-proven and focused 
strategy for growth both organically and by acquisition. Significant opportunity for a well-rounded - 
finance professional with M&A experience and exposure to treasury seeking en/umcal respon s ibility and 
professional growth In corporate deve l o pm ent and, tn due course, general man ag em en t. Excellent 

international career prospects. 


THE ROLE 

■ Reporting to Group Finance Oliecior with specific 
responsibility for corporate development and 
treasury as pan of a small head office finance 
team. 


Working closely with the Board to identify and 
evaluate potential acquisitions internationally, 
developing proactive relationships with key financial 
advisors in the City. 

Strategic management of treasury, supervising an 
established high quality function, focusing on 
funding and balance sheet managemenL 


THE QUALIFICATIONS 

■ Graduate. Chartered Accountant, aged 30 plus, with 
M&A exposure and treasury experience gained in 
either a merchant bank or a corporate Second 
definite European language an advantage - 
preferably German. 

■ Strang analytical skills and broad business overview 
combined with first-rate written and oral 
communication skOfs. Comfortable handling 
complex negotiations at senior level. 

■ Accomplished networker and relationship builder, 
capable of operating effectively as pari of a small 
head office team. Self-starter with the ability to work 
Independently. 


1 Selector Europe 

ni4r wHi MI d^aMain 
Moon- Eniwpc. ML M008I061, 




Leeds 01 13 2307774 
London 0171 493 123S 

\ Selector Europe , 

| Spencer Sluari 

London W2 ZED 




Manchester 0161 499 170 O 

Spencer Stuart 


nuc rapjy Wtlh fan rfctWU OK 
Manor Bmp*. Kef. KOUIOU, 
16 Coonauzbt Place, 
IMdHWIUO 



Treasuiy Audit Professional 

High profile position in a rapidly developing Middle East Bank 
To £ 45,000 Tax Free + Substantial Benefits ■■ 

Based Jeddah - Saudi Arabia 


The National Gwmodal Bank is the largest commercial 
bank in Saudi Arabia. It has a network of oyer 200 branches 
and serves customers throughout the wodd. 

The Bank is embadring on a challenging business expansion 
plan which will include the development of new Treasury- 
and Investment Services activities. The Treasury Audit 
function is seen as having a cntical role in this development, 
assisting in establishing and maintaining operational controls 
in order- to support effective business risk mana g emmt. 

As pan of this process we arc seeking to recruir an additional 
Treasury Auditor to work within this specialist team. 

Undertaking in-depth reviews of business areas you wiD be 
required to: 

4 Risk products including securities and derivatives. - 

• Review procedures and controls in the middle and back 
offices. 

• Assess adequacy of management reporting processes. 

You will have gained operational or audit experience in a 
treasuiy environment, together with knowledge erf the latest 


Applicants for this position should be graduates and/or 
professionally qualified, with excellent coronmnicarion 
and report writing skills. The ability to work independently 
or as part of a team in a mulrinarional environment is 
essential. 

In return for your skills and commitment, the bank is 
offering employment on a two year contract basis, renewable 
by mutual agreement. The package offered inctades a tax 
fine salary, performance related bonus scheme, famil y 
accommodation, medical expenses, annual return air tickets 
to country of residence and contribution to school fees 
incurred in the Kingdom. 

For further details and to arrange an interview, 
please contact Tim SandweQ at Barclay Simpson Associates, 
Hamilton House, 1 Temple. Asrenue, Victoria Embankment, 
London EC4Y OHA. Telephone 0171 936 2601. 

Fax 017.1 936 2633. E-mail tp@bar-sumdemon.co.uk 


the nrmomL tominBtanL ram 


Director of Finance 

Northwick Park & St Mark’s NHS Trust 


To £60,000 


ifl 

Harrow 


Excellent career opportunity at Board level for ambitious finance professional. 
Make a major contribution in shaping this leading provider of health care services 
in north west London to become a model hospital for the 21st.centuxy. 


THE TRUST 

♦ Provides a full range of general acute services to load 
population of 500,000 and specialist services to a much 
wider population of 7m. 

♦ Clear strategic objectives and corporate values. Strong 
reputation for medical research and education programmes. 

♦ Turnover of c.£85ca p/a. 2,700 employees. Significant 
recent investment in new f at alities. 

THE POSITION 

♦ Executive Board Member. Contribute to development of 
Trust strategy and business plans. Report to Chief 
Executive. 

♦ Exercise strong fina n cial control, eimnin g targets are met. 
Provide dear management infbrmtrcion m the Board. 


♦ Lead and motivate finance team of 35. Support 
operational and clinical directorates. 

QUALIFICATIONS 

♦ Professionally qualified, with substantial financial 
management experience ox Board level, ideally in the NHS. 

♦ Both a leader and team player who can improve 
productivity whilst maintaining quality and financial 
viability. 

♦ Good communicator with presence and authority. Able 
to make a real impact and build effective working 
relationships internally and externally. 

The Trust is commuted to Equal Opportunities. 


Please send full cv, stating salary, ref PS6 1 004, to NBS. 54 Jermyn Street, London SWIY 6 LX 



N E SELECTION LTD 
t BNB Resources pic oo rop seoy 


NBS 


London 0171 493 6392 
Aberdeen* Birmingham * Bristol • City 
Edinburgh - Glasgow ■ Leeds * London 
Manchester • Skiu^i • Madrid • Paris 


t 


Group 

Accountant 

CJc32,500 & BMW 

Sfostanfial and dynamic UK pic which is adively 

individual* with the capacity to develop a broadly based finance 

the initial job will be rhe control and 
manaaement of the budgering and forecasting systems across the 
Grouch liaison with the business Finance Directors to 
rottinq cash flaw and profit forecasts; model ing oneoff situations and 
assistance with the monthly reporting process; and 
special project work which will include investment appraisal, 
c^uisifoL and divestment reviews. The role cab to on Mm 
young professional with a very well organised approach to the 

analy ^ b d x u °fi < MT* «• b X 

trained with first rime professional passes. Computer I iten^js a key 
requiremebl, togaherG^ ability to develop h.gh standard, of 
analytical and presentation^ skills. 

Location - South West London 

Please apply in confidence quoting ref: 16 1 5 to. 


Mifrd 

Tb* hir«aH nfc h Party 


DIRECTOR 


Mnd tht faring mental health darky b seeking a Director of finance 
ft Resources to provide strangle leadership and be respanribfa ter al 
Mridk support services including Finance, Hiamn Resource* 
Administration, Information Technology and Faddes Ma nag ement. 

Ybu wffl hM a hay role to pfcy In Mtadfc Corporate Management Team, 
fazdfag on tha dewlopment of medium and long earm financial 
ttr at e y a b and tin continued de v elop m e n t of Human Resources. 

. A quaMad acc o unt an t; you wffl have o coe fcnt analytical and pfenning 
sfcBs and ba a g>od communicator, capable of explaining complex 
flnaneU Mbmvdon to non financial people. You will abo hare a keen 
awareness of opportunities fct a new funding environment. You wtil 
ovarsee t'fcxft bntstmenr portibto and t» a dtocmr of Mindli tredbig 
compact 

Canddaas must hare experience of motivating a taun and a good 
undervaluing of ampkqfce rafations. 

Salary fcr the abova post around OS.OOO par annum, plus ben*fi». 

For an appfkadon pade write on a poftearri only me Humm Resourees 
DRR) 15-19 Braadww London EI5 48Q (no telephone cals or 
CVkplM^. 

Qosing dais for competed appficadom 15 November 1996. 
ktijenfaw* expected 6 December 1996, 

Rag. Charity na 283329 

Mhdii at etpnf opponmAfes empkgw 


SCOTT 


Brian Mason ' 

Masc»i & 

l Lancaster Place, Strand 
London WC2E tEB. 

Tel: 0171-240 7805 . 


Mason 
& Nurse 

Selection and. Search 


APPOINTMENTS ADVERTISING 


appeals to the UK mtttion nvwy Monday, Wednesday A Tfwndtry 
and In «m International atfltion every Friday. 

For further infor ma t i on pteaae calL- 

Toby FtaHhMtCvoftB Ml +440171.873 3458 


PROVIDENT 


HEAD OF INTERNAL AUDIT 

c.£60K + Executive benefits 

The Scottish Provident group currently consists of seven operating units (three based in the 
UK, the others based in Ireland. Greece, Spain and the Isle of Man) transacting principally fife 
assurance and investment business. The group hat funds under management m excess of £6bn. 
We are looking for an experienced Individual to lead the Internal Audit department, which is part 
of the compact Group Head Office in Edinburgh. 

Prudential control of the business in Its widest sense is taken very seriously in Scottish 
Provident. There is a strong Audit Commttree of the main Board, and within the Group Head 
Office a Prudential Control Group which acts as a top-level management dearing house for all 
audit compliance, risk, control and corporate governance issues. The Prudential Control Group is 
chaired by the Finance Director (who Is also Deputy Managtog Director of the group) and Involves 
the Chief Accountant, the Actuary and the Secretary. You will be a member of the Group slid will 
be retired to report regularly to the Audit Committee: day-to-day reporting will be to the 
Finance Director. 

The Job involves: devising and managing a rolling audit plan to cower all the main areas of risk 
within the various operating units, enhancing the scale and competencies of the existing Internal 
Audit department and raising its profile within the organisation, and developing the practice of 
good risk management throughout the group. 

You will lave wide experience of internal auefit and hlghfy effective management skfils with 
preferably experience of the financial services sector. The abifity to think widely and imaginatively 
about risk and control Issues combined with good people skills will be important factors in the 
selection process. 

In return for your commitment, we offer an attractive salary and benefits package, Including a 
car, non-contributory pension and fife assurance scheme, private medical insurance and montage 
assistance and participation in a long term incentive bonus scheme. 

Applications in writing should be submitted to David Adams, Group Personnel 
Manager, Scottish Provident, Group Head Office. 7-1 1 Melville Storeet, Edinburgh 
EH3 7YZ. Fax: 0131 527 1 1 1 2. Closing date 2 1 November 1996. 

Scottish Provident is an equal opportunities employer *' 



: '*i„ 














VI 


;- 7 -“ 


EUROPEAN TAX LAWYER 

!)KUIV\TIVKS-lV\Sl-;i) FROM Ol'KlCK ROLF 


London 

cj£100,000 + Bonus 
+ Benefits 


This assignment is being handled 
exclusively by Brewer Morris. Please 
r contaci Matthew Phelps on 
* 0171 415 2800 

, k dr write to him at Brewer Morris, 

. . . 179 Queen Victoria Street, 
London EC4V4DD. 
Facsimile 0171 463 0740 




Brewer-Morris 


.TAXATION RECRUrrMENT SPECIALISTS. 


We nre representing a worldwide financial services organisation which 
advises muUiriiuioiial corporations, financial institutions and. 
govcnnntnx entities. The global derivatives financial structuring group 
en gineer s unique investment products and creates derivatives- based 
solutions to tax and accounts issues for major corporate clients. 
Sustained expansion across the global derivatives business has created 
a new role within this dcdimird team of 6 professionals. Key 
responsibilities win indude:- 

• structuring and tnailoeting of tax-advantaged products to clients 

• utilisation of nUBrnarional/domestic tax rules to enhance trading 
revenues 

■ provision of tax input to documentation issues surrounding 
complex derivatives trades 

As a European, qualified Lawyer you will have a broad knowledge of 
European tax systems and treaty networks, and a" genuine 
understanding of financial instruments and- their outf 'treatment. 
Transactional experience in a bank or investment boose would be 
ideal, however relevant experience gained in a leading advisory firm 
is equally welcome. Strongly team-orion rated, with excell ent 
organisational and execution skills, you wiH engender trust with a' 
broad range of so ph i sti c at ed c o rp ora te cheats. Hueaatiy pm or more 
major languages (iiKJudin^Eflglisb) is essemfeti. V V . . 


. V.\ - S VlNANCIAl; TIMES FRIDAV NOVEMBER 

Group Director Of Finance 


1 1996 


} \ V 

li \ A ! 

! iON A!. M \ M1 \(" 

i i * i 

I I N <■ 


E\< K i I F \ ! S A ! \ ! 

n cv 

f5 f \ i; ! ! i s 



Oxi "t: i> 


W Lucy Is an Independent, verhcao^-' Migrated 
manufacturer of electrics! efetribution oqufcrnaqt, grey -and 

SG Iron castings. Rs two rtMi opacstihgl . 

oombined turnover of c£35m, su^po&cf^y a ; 


property and investment division, It femtffrafted i 
with sub si diaries, a ssocia te rompartesrabd • 
agreements, in major worid markats. U 


ithfeUK. 

harsWp 

scale 


in v estment programmes- over thelast TO yearshave 
^owed the co mpa ny to meat the c haBy ges of d changing 
market ptaca. . . • V | | 

Reetructuring' lrOt> focussed business units is ^ongoing 
and necessitates ■ toe finance function adding yakie to 
manufacturing and commerc i al operations of- varying size 
and ^complexity-. Tito position takes full rasponaibWy for 



the day to day handeon control of the centralised finance 
function, induing the devriopmenf of reporting sys»™> 
and controls. This new role reports to (he Board, early 
accession to which fe envisaged. 

candidates wW be ACA or dMA professional accountants, 
vvhh extensive business experience. They wffl probabty be 
senior financial axecutives In multi-sted, international 
manufacturing businesses. Wen rounded and highly 
o om m e tdaB y orientated, they wiH bo skffled In the provision 
and implementation of tight operating and finance controls. 

Please send a comprehensive CV to Keith Miner, 
Howgate Sable & Partnera. 35 Curzon Street, London 

W1 Y7AE.iy: Of 71 -4951 234, Rix: 0171-495 1700, quoting ret 
FX34CLD. VSs ff our web street HBpdlwawtDplQb&coJjk 

Howgate 

& Partners 

Executive Search and Selection 



EUROPEAN FINANCE 

WEST OF LONDON . 


. •?; 





c £60,000 + CAR + SUBSTANTIAL BONUS 


This major US based compute^ {easing and trading organisation has 
recently established a powerful presbnee in Europe and is well poised for 
growth in its major European markets. It is focused on providing the 
highest level of customer support and choice, whilst remaining at the ' 
forefront of developments in systems technology. 

In line with supporting the European Managing Director to drive the 
business forward across Europe, an exciting opportunity has now arisen 
for a highly commercial individual -to join the company as European 
Finance Director. 


Reporting to the CFO in the United States, and the European Managing 
Director, specific responsibilities will include overseeing European group 
and management reporting to the US parent and providing financial strategy 
and commercial direction to this Group. In addition this individual will be 
responsible for the management of ongoing banking relationships and all 
other treasury related issues. 

The successful candidate, probably aged mid to late thinks, will have a 
professional accounting qualification, experience of US GAAP reporting and 
ideally some exposure to die leasing industry (servicing any business sector)- 


ROBERT WALTERS ASSOCIATES 


Strong presentational and inter-personal skills are required to 
support the- blend of reporting and commercial experience necessary for 
rhiK position. The ability to manage and motivate a number of teams 
within finance and MIS based In Europe will be key. 

Interested candidates should forward their curriculum vitae, 
including remuneration details and daytime telephone number to 
Andrea Black or Richard Parnell at Robert Walters Associates, 
42 Thames Street, Windsor, Berkshire SL4 I PR, or fax 01753 <578 908. 
E-mail: aadrea.black@cobertwatters.com 



■ t tiweroff 



F 


ercial Mind” - Major International Consumer Business 

.. i i 

rroup Financial Planning Director 

Eorfy/Mid-3 Os c £.60,000 + Substantial Bonus + Car Home Counties 




Our -Client Is a major “household name* highly profitable and 
fest-growlng international consumer business, with a strong reputation 
lor dynamic and aggressive management, and Is the established 
i market leader with operations that span the UK, ConDnotial 


Promotion ol the current incumbent has created a need tor an 
exceptional and ambitious qualified accountant to lead its central 
Financial Pfenning function. This tngftfy Qualified and experienced 
professional (Barn is responsible tor pravkfing analytical and business 
support to operational management In terms of identifying and 
rsccwnerafing profit Imprmemant apportunOes, as well as preparing 
Group annual and long-term plans, monitoring and critically 
^praising country operating results, and producing regular Board 
reports and forecasts o) Group performance. Additionally, your team 
will araiuatB ail significant Investment projects, produce preservations 


to shareholders, banks and City institutions, and be involved In all 
corporate finance projects. 

You will be a htfily commercial and analytically-minded qualified 
aocountafit with previous man-management and financial 
pfenning/analysis experience gained within a ‘disciplined* 
environmert ideally in an Int er n ati onal East-moving consumer product 
or service business. You will also need' to be self-confident yet 
diplomatic with good interpersonal skills, have strong powers of 
persuasion and to able to demonstrate finance directorship potential. 
The remuneration package is flextoto to aflrattan exceptional individual. 

Yoa sbnli write or tax In conflduca, Mdcriag your 
rasarau aid currant salary details and daytima/suoaini 
tatopfaouB contact numbers, quoting raf s ronco 61801 on both 
envelope aad tatter/fax. to the address betoac 


Ctnyssapbes Rammigar Associates, Bechtel House, 245 Hammersmith Road, London WB 8DP (Fa ic 0181 528 9878). 


SIEMENS 


Siemens is one of the largest most prestigious and innovative electrical and electronic engineering manufacturers 
in tho world. As a leading force in a highly competitive global market, we have maintained this position by 
continual innovation and development 

As a result of internal promotion and expansion, we have two vacancies in: 


.Corporate Controlling 

Winchester - Manufacturing 
Bracknell - Project, Product & Service 

Attractive Salary, plus bonus and car 


Following the decentralisation of financial responsibility within Semens, it is Corporate Controlling’s responsibility, 
on behalf of the Board, to review the financial performance of each business. Working closely with each 
business you wifi be responsible for developing and expanding their financial review processes. 

Candidates will be qualified graduate accountants, possibly with an MBA, and a minimum of four years POE. 

All applicants will possess analytical . exedtanoe. proven financial and commercial ability and exceptional 
communications and presentational skids. 

This- is a very high profile role with significant exposure s* senior management level, affording the successful 
candidate the opportunity to be part of a highly innovative company and contribute to its continuing growth. 
The potential for career progression is excellent. 

To apply, please sand your CV. to Lynette Gleason, Personnel Mana ger, Semens pic, Siem ens H ouse, 
Oldbury, Bracknell, Berkshire RG12 BFZ. Telephone (01344) 396237 Facsimile (01344) 396235 
Poring date: 15th November 1996 


Innovation 


Technology 


Quality 


Siemens 


Appointments 

Advertising 


appears In the UK 
edition every 
Monday, 
Wednesday & 
Thursday and in 
the International 
edition every 
Friday 
For further 
. information 
please call: 
Dominic Knowtson 
+44 0171 873 4015 



Executive 

C £55, OOO & Car 
& Performance Bonus 


Our client is a £1 billion quoted FMCG -Group with a number of 
market leading positions in large but very competitive consumer 
product sectors. 

An early promotion from the corporate team has led to the need 
to recruit a Chartered Accountant aged about 30 who will work at 
Main Board level on a series of strategic initiatives which are central 
to the next phase of the Group's development. The role wiH therefore 
span acquisition and divestment* studies, investment appraisal, -Ifie 
evaluation of competitive activity and industry structures, and forms of 
joint venture and product licencing. 

Applicants should be graduate ACA's with a top level academic 
and professional record ana proven success at Senior Manager level 
in the mainstream of a big 6 firm, including a good cross section of 
special work. Individually, candidates must have the eriekgy, 
dedication and lifestyle to cope with sustained pressure and make an" 
impact both at Main Board level and with external advisors and third 
parties. The position will be based in West London. Relocation 
assistance will be available if necessary. 

Please apply in confidence quoftrgrefr L6 1 4 to: . V • A : " & 


Brian Mason 

Mason & Nurse Associates 
i Lancaster Place. Strand 
London WC2E 7EB. 

Tel: 0171-240 7805. 


Mason * 
& Nurse. 

Selection and Search 



Gro u p* d* 

da conna tz 900 
pMMD%1SMd 
da franca da CAJ. ao 
fort d * valo p p am a nt 

- i r Stranger 



Rsttaehe A la Direction International*. 

- vous pranez an charge : 

. la ntiaa an place d*outils tie contrfrte 

financier afficacaa mats s im pler, 
preface dm terrain, component las 
queiques fndfcsteuissensJbtes qu) 
permanent une direction ttiectiy at 
unc prevision rteUste, 

• ra aata tanoj dee fiBaW darts r uttHaa- 
tion dev outfit ratamis on mattore do 
budgm, reporting, analyse et auM dea 
cttffrea-cMs. 

- ramtitiorstion at revolution dea proc^ 
d urea da na la aouc? tfuno Constanta 

adaptation awe changemema rspldes 

dugroupe autant qu'wx rmptiratfte 
da* dhfgeants, 

• las relations avec lea service* compta- 

biRti at eontrdle da geation du groupe, 

candidature (lenre, CV, selwra souhalrtj. 
Conwil qul l'«tudiera an tout* confidential!!)* : 
ctnnos. 1 1 Boulevard Pershing, 7G0T7 Paris. 


Vpsne formation suptiriettiv an gaathn - 
ast vakxis*e par une experience 
Qptrationneile de 3 an* minimum, 
aequlM an cabinet tfautSt ettou dans 
une aocMtti int e rnational* de prasta- 
tiona da aervicea de "metfere grtsa'. 

See* * Parts, dana une«qttipe«to 
Ngftre su aem de laquade vous tSspoeez 
d'una large autonomlo. Voce aflaczuaz . 
de nombreux NpOeantnti * rtimnger 

pour suhna fee 8 tefilw dent vtxnMz' 

fe charge. .|£'i' 

Irm^rogtraiira.il ri- • ’ - •*--■- 


‘I 


If,- 


■ vous ataH r ls a fc 


parfartamant la franqals sv*i possible. >? 
fallamacd. 


ETHN0S 










Executive Search 


European Tax Analyst 


Senior Researcher 
Finance Director Recruitment 


orffmuriibrfu leadens fa executive search with an outstanding record 

j Of a highly collegiate structure and a quality consulting 

Or “* /naz * ce leader in the recruitment of Finance Directors In the UK 
■ ^"BPon and enhance our position we now seek an exceptional Individual to Join our 

close knit specialist team. 

m r ^ a S Ch on Senior ,ewel rMato?^^Si?Sth at least five years' 

btoe-ehip clleH* STtof? 5S expericn ° e m dlher finandal recruilinenI - or 

international markets. 




Work alongside the financial management 
consultants on the search process attending 
Client meetings and then playing a pivotal role 
in Identifying, attracting and appointing key 
executives. * J 

Provide proactive support bv constantly 
monitoring market trends and developments 
in financial management. 


the profession. Language skills and computer 
literacy would be an advantage. 

Proven project management skills. Flexible, 
tenacious and energetic, with a natural 
curiosity. Robust, with a sense or humour. 

Excellent written and verbal communication 
skills with an ability to work in a cross- 
cultural environment. Stature and presence to 
engender credibility at senior management 
level both with clients and across the Spencer 
Stuart network. 


Excellent 
Compensation & 
Benefits 

European HQ, 
Bracknell, UK 


Leeds 01 13 2307774 
London 0171 493 1338 
Manchester 0161 499 1700 



|! Selector Euro pe 

Spc-iicc r Suuiri 


A major supplier of corporate fT 
solutions to b truly global customer 
boss. Dell Computer Corporation is 
renowned for innovative products 
and exceptional customer 
commitment. A progressive, 
multinational front runner and a 
leader within its marketplace, Dell 
has achieved revenue growth In 
excess of 50% per annum. 

As a young, dynamic individual 
working directly with the European 
Tax Manager, you will Initially 
focus on value added taxes and 
additionally will be expected to 
work on a variety of direct 
European tax Issues. 

A qualified lawyer or accourftara. you 
will possess a minimum of three 
years' international tax experience 
ideally gained in a commercial 
environment. A solid knowledge of 
European VAT should be 


complemented by a thorough 
understanding of one or more EU 
corporate tax systems. Fluency In 
Englsh is essential and a knowledge 
of other European languages would be 
advantageous. Tenacity, mental 
toughness and ambition win provide 
you with exceptional career 
opportunities within this vftvant global 
Corporation. 

Candidates Interested in this 
outstanding opportunity should 
sand/fax their CV (In English) to our 
advising consultants Jane Storte and 
Mark Pockeie at FSS Europe. 
Charlotte House. 14 Windmill 
Street, London WlP 
20V, united Kingdom, 

Fax: 44 171 209 0001 
or 44 171 813 9479. 

Tel: 44 171 209 1000. 

Quoting ref. F333. 

FSS 

EUROPE 




SGS Society G6n6rale de Surveillance Holding S.A. (the SGS Group) founded in 1878, 
with headquarters in Geneva, Switzerland, is the world's largest organisation in the 
field of testing, inspection, verification and quality systems certification. The Group 
operates in over 140 countries with 335 subsidiaries, 1220 offices. 342 laboratories 
and 35,000 employees. 

The Group's worldwide operations have expanded rapidly during the last years. 

Given the increased audit universe, we are looking for complementing our Internal 
Audit Function based in Geneva, Switzerland, or Parsippany N.J. USA, with high 
calibre and dynamic individuals for the position of 


INTERNAL AUDITOR (M/F) 


Tasks and responsibilities 

• Performing financial and operational review missions 
worldwide in the SGS Group universe 

• Advising on improvements of operations in terms 
of minimising risks, improving quality, efficiency and 
effectiveness 

• Understanding operational, local and business 
considerations 

• Special projects, including due diligence work 

Profile of the suitable candidates: 


Divisional Financial Director 

World Class Manufacturing Business 


Germany 


to DM210,000 
Package + Car 


Snsriae Medical, an NYSE-listed company, is the leading manufacturer of high-value rehabilitation and recovery products for 
the disabled. Established m California in 1983* the c ompany has a r e puta tion Cor excellence in manufacturing and a form 
commitment to customer service, underpinned by a p rog ressi ve and forward-chinking style of management. The result has been 
an impressive and consistent record of growt h and p r ofitab ility, with operations throughout the USA, sod Europe- 


THE POSITION 

• Reporting to the Chief Executive of the company’s 
DM] 00m German operation, with a dotted- line to the 
European Vice-President, Finance. 

• Foil functional responsibility for all fina n cia l natters, 
including reposting requirements for the US parens* 
divisional management iw y mring , budgets, forecasts 
systems development. 

• Significant strategic exposure, playing a pi votal role in 
rhr KMgugsaan e of a complex, highly coat and might- 
sensitive business, at a time of considerable change. 

• A highly influential and prominent role in a young, 

* gr i r l i y *i\^ rapidly -wpnvUng ho s fa ms* 


QUALIFICATIONS 

• Qualified Accountant, preferably Chartered, aged at least 
30 and already operating in a senior line m a na gement 
role. 

• Fluency in both English and German Is vitaL 

• ’Experience in a quality-driven ‘discrete’ manufacturing 
environment, pre f er a b ly with international operations. 

• Broad-based line management experience, with specific 
expertise in the areas of cost control and profit- 
improvement- Proactive, able to demonstrate bottom-line 
awareneas. 

• Strung interp erso nal skills, with the intellect to 
contribute to die strategic development of the business. 


In te rest e d candidates should write, enclosing full career and salary dentils to the advising consultant, William Grcc ow eH at 
Quesoor International Limited, 3 Burlington Gardens. London W1X 1LE, quote reference 1412. Email: www-questormt^om 


► QJ 4 


QUESTOR INTERNATIONAL 

a uuUti rtf Ciw *LC Omr*wj 


\v 


1 *' 


*■ Qualified auditor (CA, CPA, CIA, Expert comptable dipldme) 

• Two to five years relevant work experience in an 
international environment after gaining audit qualification 

• Fluent English and either French or Spanish essential; any 
other language desirable 

• Willingness to travel up to some 60% and to undertake this 
role for a number of years 

• Excellent communication and writing skills 

• Swiss nationality or Swiss C work permit (for Geneva) 

U.S. nationality or Green card (for Parsippany) 

For successful candidates this position, clearly offers exciting career 
prospects in the SGS Group.. 

Interested candidates should send their application letters and curriculum 
vitae to SGS Soci£t6 Generate de Surveillance S.A., 

Human Resources Division, P.O. Box 21 52, CH-1211 Geneve 7 

Interviews will take place late October / early November. 




Our dientis a global corporation and a world leader in its market, with 
operations in 130 countries and 90.000 employees. Its UK operations contribute 
in excess of £300 million to a total turnover of $ 12 billion. 


-all • 


a i** 

N'l« ? 


TUB 


OPPORTUNITY 


Due to promotion, an excellent career opportunity now exists for an 
ambitious finance manager to join the senior management team of the Group 
Commercial Division. The position reports to the Divisional Director and has direct 
responsibifty for four staff. The Division employs in excess of 250 staff and is 
responsible for defining and implementing the Group's UK commercial, sales and 
marketing strategy. 


T H B 


C AND 1 JO A T R 


,u- y 


ABRAHAM * BEASLEY » PRICE • MOBCAM 
FINANCIAL* RECRUITMENT ■ SPECIALISTS 


The successful candidate will be a qualified accountant or MBA aged 
between 28 and 35 with at least three years relevant management experience 
ideally gained in a similar role and environment. This is a high profile position 
based in the Group's UK headquarters and as such represents a genuine career 
opportunity for the most ambitious and able of candidates. 

Interested cancfidates should in the first instance send their CV together 
with details of their current salary, work and home telephone numbers to Jeff Price 
at ABPM, Redridge House, 9 Bailey Lane, Sheffield SI 4EG, Tel: 01 14-278 0011, 
Fax: 0114-273 8384. Email: gsl 0f9abpm.oo.uk Please quote reference GS10F. 

OFFICES AT BIRMINGHAM, LEEDS, 
MANCHESTER, NOTTINGHAM AND SHEFFIELD 


Appointments Advertising 


■l aooears In the UK edition every Monday, Wednesday & Thursday and in 
i the international edition every Friday 

For further information please call: 

Toby Finden-Crofts on +44 0171873 3456 


Senior Tax Advisor 

Front Office Role in 
Global Investment Bank 


Compensation: £60,000 - 1 100.000 + Benefits 


Cit\\ London 


We axe acting for a leading investment bank 
and securities house, which is part of one of 
the premier worldwide financial services 
organisations. Our client has seen significant 
growth across all business units, particularly 
in the field of emerging markets. As a result of 
this growth a role has been created to provide 
transactional and structural tax advice to the 
main trading units in Europe with particular 
emphasis on global emerging markets 
activities. 

Specifically the role will involve: 

• Responsibility for assisting the business to 
structure transactions. You will be viewed 
as a deal-enabler and thus you must be 
comfortable in a highly proactive role. 

• Involvement with the tax based products 
team in the bank, playing an active part 
from origination to completion. 

• Initiation of worldwide tax planning 
policies. 

The successful candidate is likely to be a 
qualified Chartered Accountant or Lawyer 


with 5-10 years’ post qualifying experience 
within a global organisation. The role could 
offer career advancement for candidates from 
other financial institutions. Alternatively, it 
would suit an applicant seeking a first move 
away from a major professional firm in 
London, New York or Continental Europe. 

Our client is not necessarily looking far 
experience within the field of emerging 
markets or advice on trade structuring. 
However, it is essential that candidates are 
commercial and creative in outlook, and show 
an enthusiasm to get the deal done. 

For further information on this retained 
ass i g n ment please contact Jim Birrwell on 
0171 415 2800 (outside hours 0171 622 0900), 
or forward a comprehensive resume to 
Brewer Morris, 179 Queen Victoria Street, 
London EC4V 4DD. Facsimile 0171 463 0740. 


Brewer-Morris 


TAXATION RECRUITMENT SPECIALISTS 


l esMw s 

The PT can help you reach 
addinooal business readers in 
France. Our link with ihe 
I French b erina g news p aper. 

; Los Echos, gives you a unique 
recruitment advertising 
opportunity to ca pita li s e on 
tbcFTs European readership 
and to farther target the 
French business world. 

For information on rates and 
further details please 

telephone: j 

Ibby Finden-Crofts on 
+44 171 873 3456 I 


Ad Agency 
Financial Controller 

London W.1 

This successful, profitable Advertising and Direct Marketing 
Group is urgently seeking a Financial Controller who has the 
potential and drive to continue to enhance the value of 
the financial function. 

ACCA qualified and advertising agency experienced, 
this is an excellent opportunity for someone to use their 
commercial and technical skills to the full and make a key 
contribution to the business as a whole, answering directly 
to the Chief Executive- 

Salary commensurate with experience. 

Apply now to: Mike Wisgard, ATW Group, 

No-1 Wardour Street, London W1V 3HE, 
or fax 0171 494 2034. 


sSparai iffqf- 













VIII 


FINANCIAL TIMES 


FRIDAY NOVEMBER 1 1996 




IT Appointments 





The logical move. 

Principal Consultants - Banking & Finance 
EuropeWide - Zurich HeadQuarters 


Logica Consulting Group is an elite organisation, 
offering strategic fT constancy at the highest 
levels of Europe's Banking and France industries. 
This is a fast^rowtng business vutich has the tufi 
support and backi^ of Logica, the miitHiationat 
compffiy with a turnover of £300 mSonand 
employing some 4000 people. 

Our “b&iguaT approach bridges trie gap 
between business requirements and technology 
opportunities and is designed to help our 
customers tom management strategy into 
decisive results. 

Logica Consulting Group boasts a number of 
prestigious clients and the chalengeisnowto 
become qtscWy recognised as one of the top 
three Strategic IT Consulting firms. 

To help us fulfil this mission, we are looking for 
talented individuals with impeccable credentials 
and European ambitions. If you are one of them, 
we believe that this is the logical move to 
further your career. 

Your skills win complement the team in one of 
our specialist practice areas; 


W Consulting 
Group 

Interpreting business & technology ; We're bilingual 


CONSUMER FINANCIAL SERVICES 

Our capability is geared towards big names in 
Retail Banking, with special focus on the 
Customer Service Value Chain, from Customer 
Interface through Banking Processes to 
Customer Information Management This 
involves exarruvng developments in Telebanking, 
TeledeHvwy, Electronic Purse, Customer 


Resource Management (CRM) and Technology 
Ti^isfbrniation, optirrasing benefHs from current 
and emerging/lnnovative technologies eg. Date 
NSrrcig, IntemeJ/totranet Advanced Call Centres, 
Sales and Marketing Systems etc. 

INVESTMENT MARKETS 

Dealing with business orientated issues in 
the front, middle and back offices and the 
trading floor. 

The protects wffl mdue anything from Trader 
Workbench Strategies and Exchange Automation 
to Deosjcn Support and Risk Hedging Strategies. 

These are challenging roles and you wfl need 
practical expertise and knowtedge of market 
trends combined with a creative and 
ertreprermiaJ approach. You wffl afeo have 
excelent academic achievements, be happy to 
travel and be fluent in several languages. Your 
starc&ig with senior people in major complies 
wi have a strong bearing on your success and 
so impressive communication skis are essential. 

If you woidd welcome a high level of 
freedom to exploit your mdtvkfual 
expertise and ambitions, we would like to 
hear from you. For further inf or mation 
please call our advising consultant, 

Grace Ellams on +44 (O) 171 242 2010. 
Alternatively, send fid career details to 
her at Executive Network Consultants Ltd., 
12S High Holbom, London WC1V 6QA. 

Fax: +44(0} 171 430 2587. 

Emafi; erd@btintemetcom 



FT IT Recruitment appears 
each Monday, Wednesday 
in the UK edition, 
and each Friday in the 
international edition 


For more Information on 
how to reach the top 
IT professionals in 
business call: 

Emma Lloyd 
+ 44 171 873 3779 

Dominic Knowlson 
+ 44 171 873 4015 



IT in Support of 
The Business 


Commercial Accountant 
to lead key projects 

Package to £40,000 + Benefits 
Cheshire (Relocation available) 


Barclay’s is one of the world's major financial services companies, with capital 
assets of over 11.4 billion and employing 87,000 people in over 70 countries. The 
Group comprises not only the UK retail bank but spans commercial and investment 
.banking as wbII as a substantial asset management business. 

Group Operations and Technology {GOT} is a commercially focused multi- 
million turnover organisation, responsible for defining the Group's IT strategy. 

The financial systems strategy is underpinned by the implementation of Oracle 
Financial Applications, and integrated MIS solutions, including exploitation of the 
latest OLAP technology. The pace and depth oi this change has necessitated the 
recruitment of a high calibre IT orientated qualified Accountant with strong, 
proven project management skills. 

The key challenge of the role will be the successful management of fT development 
projects from inception ru implementation. Success will be measured on the 
ability to deliver on time, within budget and to the agreed quality standards. 

Naturally, such a rale requires an individual with the ability to lead and motivate a 
team, utilising strong skills in issue and change management who can retain a 



BARCLAYS 


keen focus on delivering the goal and objectives deemed to be in scope. The 
Project Manager will have the opportunity to develop true multi-discipline skills, 
thereby positioning them for the valuable role of an Accountant who can fully 
exploit IT in support of the business. 

You will be a graduate calibre Accountant with strong technical knowledge 
involving the use and development of IT solutions. Excellent communication skills 
and a focused yet lateral approach are prerequisites, along with 
demonstrable ability to work to high quality standards and the drive to succeed. 

Future career prospects with Barclays Bank pic era first class, Bad interested 
candidates should apply, enclosing fall CV, to Andrew Macfcie at Robert Half, 
Brook House. Spring Gardens, Manchester M2ZBQ. or telephone 0161 236 0101 
(24hr answering service), alternatively fax your CV on 0161 Z36 1024. 

E-mail: manrtiestei@rtuK-aLca.ufc 

As retained consultants, any CVs submitted directly to oar client will be 
forwarded to Robert HaH. 



Robert half. 


A Division of Robert Half International 




London * Brussels * Paris * Amsterdam ■ New York and over 200 offices worldwide. 



INVESTMENT BANKING. FROM 



STRATEGY CONSULTANTS - IT 


The Boston Consulting Group 


LONDON 


• The Boston Consulting Group CBCG) is the 
leading international consulting firm focused 
on developing and implementing strategic 
change. Operating out of 56 offices around the 
globe. BCG serves many of the worlds' leading 
companies. 

• BCG has a continuing and growing need to 
integrate strategic level IT consultancy into 
many of its client services across all business 
sectors including financial services. 

• BCG wishes to expand its consulting team 
by recruiting a number of exceptional IT 
professionals from either line or consulting 
disciplines, with proven ability to link business 
and IT strategy. 


Please ipplv a writing quoting reference 1 146 
with full career and salary details to. 

Alan Mum by 

trhilefread Selection Limited 
II HlU Street. London W1X SBB 
Tel. Cl"! ,290 2043 
hnp://*>~«'*v.gbnct .cu.uk/whxtehcid 


EXCELLENT PACKAGE + PROSPECTS 

• Young and energetic, probably in your mid 
20's to early 30's, with an excellent academic 
background possibly supplemented by an 
MBA. Outstanding track record within a 
complex and commercially focused IT 
environment necessary. 

• Hands-on experience of managing large- 
scale IT development/service delivery highly 
advantageous. Professional consultative style 
required, able to present at Board level. 

• The successful candidates will receive 
significant training to broaden their skills as 
strategic consultants, on BCG's main 
consulting career path to Partnership. 


Whitehead 

selection 


a WlUfdMad Nan Group PIT c om p in y 



INTERNATIONAL ^ 


INTERNATIONAL OPERATIONS ANALYSTS 

London £20,000 to £35,000 + Bonus + Benefits 

Owned jointly by the Financial Times and London Stock Exchange, FTSE International is a small, fast 
growing company specialising in the calculation of share indices. FTSE is looking to supplement and 
strengthen its international Operations team with three Analysis in the administration of indices. 

You will be responsible for calculating share indices on markets globally for use by fund managers and 
security traders. You are likely to have 2-3 years experience of working in the financial services market 
dealing with UK, European or Far East securities and corporate events. 

You must possess a degree or equivalent financial qualification, have effective PC literate and database 
administration skills, be a good communicator, and enjoy working within a team environment. 

Interested candidates should write with full CV, quoting current compensation to: 

Paul Grimes 
FTSE International 
The Podium 
St. Afphage House 
2 Fore Street 
LONDON 
EC2Y 5DA 



fS Recmititfeiifell 


Works 


The FT IT Recruitment section is also available all week 


on www.FT.com 






17 


P 


Butterley 

ENGINEERING 


01773-746 III 


FINANCIAL, TIMES 



©THE FINANCIAL TIMES LIMITED 1996 


Friday November 1 1996 


IVECO 



TRUCK 


.'TOWN'S 

INTERNATIONAL TRUCK MANUFACTURER 




IN BRIEF 


Dresdner Bank 
profits up 30% 

Dresdner Bank announced a 80 per cent rise in 
operating profits to DM1.8Bbn (S1.28bn) for the 
first cine months and confirmed plana to open a 
direct banking operation next year. Page 20 

Shanghai B shares reach record low 

The hard currency B 
share index in Shanghai 
ended at a record closing 
low on heavy selling by 
foreign investors, disillu- 
sioned by poor corporate 
performances and Bei- 
jing’s repeated reaffirma- 
tion of a ban on domestic 
investors trading the B 
shares. The index fell 
0.226 to 47.077 points, 
below the previous 


'China';'-'. - 

ShangtWSEB^Kiex 

60 1 — " ' ■ 


as- 


, 6D — 



4®' 


jua. 


ityoK B*— 

record closing low of 47.13 points on June 7. 

Page 36 

Tteco surprises with first-half results 

Tata Iron and Steel Co, India's second largest 
steelmaker, surprised the market with better 
than expected first-half results. The flagship of 
the hotels to trucks Tata group lifted net profit 
25 per cent to R&L52bn (570.6m) in the six 
months to September 30. Page 18 

Ko ma t su reports 55% rise in profits 

Komatsu, the world's second-largest maker of 
constr u ction machin ery, reported a 55 per cent 
rise in n on-consolidated recurring profits, up 
from a previous Y6.1bn to Y9.5bn ($83m). This 
was on sales that were 7 per cent higher at 
Y25L4bn. Net profits rose 22 per cent to YbSStin. 
Page 18 

Mitsubishi Heavy boosted by weak yen 

Mitsubishi Heavy Industries, the largest of 
Japan's diversified shipbuilding, aerospace and 
machinery groups, cited the yen's weakness as a 
factor in Its doubledigit profits gr o wt h for the 
first half. Page 18 

El Al sod-off plans receive setback 

El Al. Israel's national airline, confirmed it 
expects losses of $100m this year, a development 
seen as a setback for the Israeli government's 
plans to privatise the company. Page 20 


Companies In this Issue 


ABN Amro 
ANA 

Abbey National 
Acorn 

Airbus Industrie 
Alcatel Alsthom 
BaM Auto 


20 

18 

24 

21 

5 

20 

18 


Bayertoche Hypothekn 24 


Body Shop 

Borealis 

Budvar 

Budwateer 

CANTV 

CME 

CVRD 

Contlco Int 

Coots 

DCS Holdings 
Data General 
Den norake Bank 
Deutsche Pfandbrief 
Deutsche Telekom 


33 , 18 
20 
20 
20 
22 
20 
22 
8 

22 

1 

22 

20 

24 

23 


Discovery Petroleum 23 


Dofasco 
Dresdner 
El Al 

Espepebe 
GAN 
Gazprom 
General Electric 
Hitachi Chemical 
Hitachi Zosen 
Horsham 
Kuysamer State 
KNP BT 
KPN 
Komatsu 


22 

20 

20 

20 

2 

1 

5 

18 

18 

22 

20 

20 

21 

18 


Mitsui Petrochemical 

Mitsui Shipbuilding 

Molson Breweries 

Monsanto 

Motorola 

NatWest 

Neste 

Nikon 

Nissan Chemical Inds 

Nycomed 

Olivetti 

Qragen Minerals 
PTT Netherlands 
Pharmacia 
Pharmacia & Upjohn 
PhIBpptne Airlines 
Philips 
Pffldngton 
Pratt & Whitney 
Premier Ofl 
RWE 

Roite-Royce 

Royal Dutch/SheB 

SPT Telecom 

SSAB 

Sabena 

San Miguel 

Sehroders 

SheH 

Stakis 

Statoil 

Stena Line 

Stet 

Sumito m o 

Sumitomo Metal Mto 
Swiss Telecom 
T&N 

TV Asahi 


16 % of Matav earmarked for public offering is valued' at $ 5 Q 0 m 


Hungary telecoms group to 



By Nicholes Denton in London 

Matav, Hungary's national 
telecommunications company, 
is poised to float within the 
next 18 months in one of the 
largest initial public offerings 
to emerge from eastern 
Europe's developing capital 
markets. 

At current valuations, the 
tranche of 16 per cent ear- 
marked for the flotation is 
worth about 5500m. 

This exceeds the 5429.3m 
raised by Russia's Gazprom in 
the region’s Largest interna- 
tional share deal to date. 

As a result of the transac- 
tion, Deutsche Telekom and 


Ameritech, which own 67 per 
cent of the Hungarian com- 
pany, will lower their stake to 
51 per cent. 

The deal could be enlarged if 
the Hungarian state decides to 
decrease its 25 per cent hold- 
ing. 

The decision by Deutsche 
Telekom ftnn Ameritech to pro- 
ceed with the flotation has 
been confirmed by an invita- 
tion to four investment banks 
to put in plans for the sale and 
pitch for the role of global 
coordinator. 

The In contention — 

CS First Boston. Deutsche 
Morgan Grenfell, Merrill 
Lynch and Morgan Stanley - 


have until November 15 to 
develop proposals. Goldman 
Sachs, Salomon Brothers and 
UBS approached Matav but 
were not included. 

In December 1998, Deutsche 
Telekom and Ameritech paid 
5S7Sm tor a stake of 80 per cent 
in Matav when the state- 
owned telecoms company 
became the first east European 
operator to be privatised. 

From 1994, the Hungar- 
ian government, which has 
wrestled with one of central 
Europe’s highest budget -defi- 
cits, looked into raising fur- 
ther proceeds through an 
international private place- 
ment or a flotation of its 


remaining holding. Deutsche 
Telekom and Ameritech per- 
suaded Budapest to wait until 
they were further along their 
three-year programme of 
I nvestm ent in Matav. 

To satisfy the- Hungarian 
government's need for funds, 
the two western, companies 
paid $852m in December 1995 
for a farther 37 per emit of 
Matav. 

However, the Hungarian 
government specified Deutsche 

Telekom ' and Ameritech 
should by 1999 float Matav and . 
lower their stake to- a bare, 
majority- • 

Under Hungarian, legislation, 
the state must hold at least 25 


per cent of-the company but a 
. relaxation teexpected. '■ 

By' tti cou rag to g toe Fln«ftHnr> 
of Matav; the government aims 
to boost ljqtddhy on the Buda- 
pest Stock -Exchange. The 
exchange index is up 135 per 
cent so for in 1996, but- only 44 
companies are listed. 

The number of lines per 100 
inhabitants bias increased to 
26.4 per cent from 14.6 per cent 
at the end of 1993. By the end 
of tois year Matav will have 
- added nearly, im new lines 
over the three years. 

■ The waiting list for new 
lines has fallen from 700,000 at 
the end of 1994 to fewer than 
200 , 000 .,: 


18 

18 

22 

22 

3 

24 

20 

18 

18 

20 

21 

18 

9 

16 

17 
6 
8 

23 

5 

23 

20 

US 

23 

21 

21 

16 

18 
17 
16 

23. 17 
20 
17 


28 

18 

21 

23 

17 




By Daniel Ck ean In London 


Channel rivalry forces 
Stena into nine-month loss 


KwokYing Bank 

1 TeteQanmark 

3 

Kwong YH< Bank 

1 TateftSnlca 

2 

Uon Nathan 

18 Telia 

21 

Lonrho 

23 Tteco 

18 | 

Mahindre & Mahindra 

18 Toys Seal Inds 

8 I 

Matav 

17 Traub 

20 

M3er 

22 Trteec 

22 

MiM 

22 Unisourca 

21 

Mitsubishi Chemicals 

18 Upjohn 

16 

Mitsubishi Heavy md 

18 Wace 

23 

Mitsubishi Materials 

18 Western Star 

22 

Market Statistics hupy/ttwn»^r,com 

^Annual reports sente 

36-31 Foreign exchange 

a 

Benchmark Govt bonds 

24 Gets prices 

24 

Bond futures and options 

U London share service 

30-31 

Bond prices and yields 
Commodities prices 

Mmaged txmds sendee 

27-29 

OMdendft announced, UK 

73 Money markets 

a 

EMS currency rates 

25 Now md bond Issues 

24 

Eurobond prices 

24 Bourses 

34-35 

Rxed interest Mces 

24 Recent Issues, \JK 

32 

FTffiSP-A World Indices 

* Short-term Int rates 

25 

FT Gold Mines Max 
FT/tSMA btO bond sve 

24 US ttoaest rales 

24 

FTSE Actuaries share Indices 32 w«« Stock Markets 

33 


By Greg Mctvor 
in Stockholm 

Stena Line, the world’s largest 
ferry operator, blamed cut- 
throat competition on the 
English Channel and disrup- 
tion from delayed ship deliv- 
eries for a foil Into deficit dur- 
ing the first nipp months. 

The Swedish company saw 
pre-tax profits of SKr272m in 
the same period last year turn 
into a SKr25im ($S8m) loss, on 
operating income down 6.5 per 
cent to SKr7.lbn from 
SKr7.6bn. The deficit was 
largely due to a poor July- 
Sept ember peak season, in 
which pre-tax profits slid from 
SKr622m to SKx209m~ 

The figures were broadly in 
line with expectations and 
Stena’s shares firmed SKx0.50 
to SKr29. The company 
repeated its forecast of a 
SKx450m full-year loss for 1996. 

Stena is expecting higher 
returns next year from its 
En g lis h Channel routes after 
agreeing this month to merge 
its cross-channel operations 
with P&O of the UK. The deal. 


Chief price changes yesterday 


nUMO'UlITtDMJ 

0 « 


25 


Osgossa 534 - B 

SBC 102 - as 

tad Wfifcp 323 - 6.5 

Unde 937.5 - 24.5 

RMnrton 1220 - 29 

-m 


MflttRnl 441* * 3 

OavOanrai 70 + 74 

SmMB 22 -r 2V, 

SianMoaUdg *5* + 2* 


GnaptanlV 3!Ti 
Sid 


NntWut W 4 - 1 H 

Plm. Marta 35 * - fri 

LOWOtllNna*} 


2rii 

IB 


EadlMdB* HW - 5*i 

GDMrtnp W* “ B«» 

Wnen raw - 66 

Henman Z9*» - f' 

TORONTO (Ofi 1 


E**G». »»* W 

fawante 2 « * ■“ 

MtebrGip. 31.25 + 2-00 


3 BO - 140 


LG Tartu. 
SMart 

PAMS im 


CtL Dior 


680 + 21 


Crwaua. 

270 + 

31 

Eoratrance 

2235 + 

32 

Lsgracd 

987 + 

15 

Sansfl 

4S3-1 + 

142 

Mi 

Darts Mag 

1365 - 

34 

TOKYO (VM) 

Mmmm 

ManoyRstf 

7D1 ♦ 

15 

Mm 

Hamm Brahe 

5S7 - 

15 

Ctaiadine 

587 - 

a 

fame 

3030 - 

ISO 

tietwa Raal 

794 - 

22 

MAMMBng 

885 - 

23 

HOMO KONO POC8) 


Wm 

ouu Baganca 

4.4 + 

0.25 

Let SUos Hong 

7.3 + 

035 

SCUT- 

iM> + 

035 

FpamHKRop 

23 + 

1175 

Mb 

Pac Conan 

2X6 - 

0.1 

TttHkwH 

4.4 - 

025 

VANQKOK (BWtfl 


Mm 

Thai Rnoncn 

eg + 

6 

Mto 

61.3 - 

65 

Wangteta 

530 - 

5.5 

KniQfikS 

104 . 

11 

IttNaatMana 

3400 - 

375 

Prop Perfect 

4050 - 

4a 


an effort to -combat aggressive 
price-cutting by Eurotunnel, 
the Channel tunnel operator, 
awaits regulatory approval. 

Price-cutting boosted vol- 
umes on the Dover-Calais 
route, Stena said, hut took 
traffic from other Channel 
crossings. Excluding Dover- 
Calais, Stena’s total volumes 
fell on other routes around 
the UK. 

Crossings on Stena’s high- 
margin Irish Sea routes fell 
amid disruptions caused by 
delays in deliveries of new 
highspeed service (HSS) ves- 
sels. The need to re-all oca te 
capacity resulted in wide- 
spread disturbance, toe com- 
pany said. The HSS craft also 
suffered running-in problems. 

Late delivery of a second 
HSS vessel on the Irish Sea 
routes meant It missed the 
peak summer season. 

Mr David Etemore, shipping 
analyst at Kleinwart Benson, 
the London-based investment 
bank, said; “In the ferry busi- 
ness, if you miss the key slim- 
mer season, you have basically 
had it" He said “everything 


bad gone wrong” for . Stena in 
1996, but predicted a strong 
rebound in earnings next year 
as benefits begin to flow from 
the P&O merger and the HSS 
ferries become fully opera- 
tional. 

Stena said the number of 
passengers on all its routes 
rose by 8 per cent in the third 
quarter. Car traffic grew by 7 
per cent, while freight volumes 
increased by 1 per cent. 
Around the UK, passenger and 
car volumes advanced 15 per 
cent and freight grew by 3 per 
cent 

The company said it was 
negotiating over the future of 
Wests Marin, a Norwegian 
shipyard which la budding two 
HSS ferries for Stena but this 
month went into insolvency 
after months of financial prob- 
lems. 

The vessels, due for delivery 
at toe start an d in to e mi dd le 
of next year, bad already been 
delayed.Stena. which has 
pumped SKr65m into Westa 
Marin this year, said it was 
unclear when toe ships would 
arrive 


Pharmacia and Upjohn, the 
Swedish-US pharmaceuticals. ' 
company, yesterday issued its 
second profits warning in : 
three weeks. 

Mr Robert Salisbury, chief", 
financial officer, said analysts 
forecasts for 1997 earnings per 
share of about $L35 were up id 
10 cents too high. 

Three weeks ago the com- 
pany said expectations for its 
third , quarter results, - pub- 
lished yesterday, were too , 

high. 

P&U shares, which had risen : 
sharply on publication of the . 
figures, fell to end SKrl3.5 
lower at SKr229.5 in Stocks 
holm. 

The company said profits . 
next year would be affected,, 
because growth was “coming' 
from, .the tower base” - the ; 

analyst 

at Merrill Lynch rnTEandoh,- 
said the company was alsd 
probably being hit by^ tougher 
than expected competition. 

She said there was increase 
ing generic competition for the 
anxiety drug Xanax, the steep:.; 
ing pfll Balctoa, and .the anti- 
biotic Cleocin. The diabetes 
drug Micronase was competing' 
against generics and powerful 
new drugs. 

P&U's third-quarter rxt'ef 
profit was 5233.7m, down from 
5230 An last year, excluding; 
$47.6m in non-recurring- 


charges related to toe compa- 
nies' merger. . ’ - . 

. Third-quarter sales rose to 
51.72bn from Sl-BSbn, Up 2 per 
cent but sluggish by compari- 
son with, most -US' and Euro- 
pton competitors. 

. -Currency • movements 
depressed performance. Exclu- 
ding exchange rate effects, 
sales in the. third quarter 
would have grown 4 per cent. 

- Third-quarter sales were 
boosted, by the launch of 
C amp tost a r. for bowel cancer, 
andJXalatan, for giauooma. Mr 
Salisbury . said Xalatan, 
launched in -August in the US. 
had 12 per cent of the market 

■ Sales of over-the-counter 
products rose 27 per cent, after 
‘a* 169 per ceut growth in Nlcor- 
ette sales. But the rise was 
mainly due - to stockbuildU& 
ahgadctf toe US; launch. 

: v . • 'operhttog 

-ftkofeimv eluding .: Conk 

- recurring 4tems, rose from 18.6 


iof schedule'"with • 3,300 staff 
^having left-toe company by the 
fend oTthe third-quarter.. 

Derivatives. of ; two * drugs, 
?inriuding 'p&U’s cancer drug 
; dp^nfofoto^ haye been found 
. to ; prolong -toe lives of ham- 
sters and mice infected with 
^scrapie' . 4 " ’a sheep disease 
'abated fo.K^rbr mad cow 
~ d&ease, blew Scientist ' maga- 
zine said yesterday. 


Lex, Page 16 


TV Asahi 
to limit 
Murdoch 
alliance’s 
influence 


By MHchiyo Nakamoto v 
In Tokyo \ ■ 

Japan's Asahi National 
Broadcasting, in . which- News 
Corporation has a 21.4 .per 
cent stake with Softbank, has 
moved to curb the influence of - 
the media group, headed, by : 
Mr Rupert Murdoch, and its 
Japanese partner. "• .• 

Mr Kunto Ito, president of 
the broadcaster known as TV 
Asahi, said acceptance of 
part-time directors from the . 
News Carp/Softbank alliance 
would be postponed until it 
accepted restrictions 
requested by other sharehold- 
ers. TV Asahi was to accept 
two directors from the part- 
nership at an extraordinary 
meeting on November 7.- : 

The action highlights- the 
closed nature of Japanese 
broadcasting, which ' was 
shaken when News Carp and 
Softbank, the software and 
publishing group, emerged in 
June as leading Investors in 
TV Annin, one of the- five main 
national broadcasters. 

- Mr Murdoch's arrival trig- 
gered alarm in the industry, 
which feared be planned to 
take oypr TV Asalu or its sis- 
ter companSfftjfre Asahi news- 
paper. Although Mr Murdoch 
and Mr Masjqroshi Son. who 
heads Saftbs&k. have stressed 
that tbefr sta& in TV Asahi is 
friendly, the^group's reaction 
indicates itfeirtill concerned. 

Mr Ito said * some large 
shareholders had asked that 
News Corp and Softbank 
accept limits on the -activities 
of shareholders, including 
non-interference in the broad- 
caster's business activities .and 
restrictions on the sale- and 
acquisition of further shares. 

“It has been tacitly agreed 
. among large shareholders that 
there wfll be no participation 
in management and - no- pur- 
chases of further shares in TV 
Asahi,” Mr • Ito «aid. The 
appointment of directors' from 
the alliance would therefore 
have to be put off until an 
agreement- could be agreed 
with the new shareholders. 

Softbank said it would con- 
sider the proposal,, while News 
Corp officials in Tokyo were 
not available for comment. 

• Nippon Broadcasting, a 
radio station which is part of 
tile Fuji Sauket media group, 
is to apply for a listing on toe 
second section' of the 
Stock Exchan ge in 


Sehroders 9 underwriting 
move follows attack on City 


N«w Yoifc and Toronto pricre ■* 1330. 


By John Gapper, Watem 
Lewis and Christopher Price 

Sehroders, the UR merchant 
banking group, yesterday 
introduced a more competitive 
method of underwriting UK 
share issues in response to 
criticism of traditional City of 
London practice by the Office 
of Fair Trading, 

UK banks and large Invest- 
ment institutions want to 
avoid the system of fixed 
underwriting fees being 
referred to the Monopolies and 
Mergers Commission on the 
grounds that it te too costly for 
companies raising capital. 

The Sehroders innovation 
was part of a 2222m (5362m) 
rights issue by the hotels 
group Stakis. a tender among 
40 investors Involving part of 
toe underwriting fees saved 
Stakis £400,000, the merchant 

bank said. 

An OFT report last year crit- 
icised the system of fixed 
underwriting fees totalling 2 
per cent or more being levied 
on companies raising capital. 

It te now close to conducting 
an investigation into the prac- 
tice and Is expected to decide 
by the end of the year on 
whether to refer the fixed 
underwriting fee approach to 
the MMC. Some critics of the 
system believe that changes 


wfll come too late to avoid a 
referral to the MMC. 

Stakis would have normally 
been charged £5m for the 
rights issue, which would 
Cover the merchant hanlt and 
big investors guaranteeing 
that the shares would all be 
bought at the set price and the 
work done by the broker. 

"We welcome any move 
which saves us money. We like 
to think of ourselves as an 
Innovative company so are 
happy to be part of this new 
type of underwriting, " Mr 

*We welcome any move 
which saves us money. We 
... are happy to be part of 
fills new type of 
underwriting’ David Mtetefe, 
Stakis chief executive 


David Michels, Stakis chief 
executive, said. 

The Stakis deal, to which 
Merrill Lynch was broker, fol- 
lows an intervention by the 
UK’s National Association of 
Pension Funds, which wrote to 
its members to urge them to 
be flexible to new forms of 
share sub-underwrlting. 

Traditional me rchant banity 
such as Sehroders, with a 
strong list of corporate clients. 


are regarded as having most to 
lose from the end of fixed fees 
which could make tt easier for 
newcomers to compete. 

Mr John Rogers of the 
National Association of Pen- 
sion Funds said the Stakis deal 
“could be the tip of the ice- 
berg”, and other innovations 
in issues were likely to follow. 
"We hqpe the OFT will note 
this development," said Mr 
Rogers. 

Prudential Corporation, 
which confirmed that it had 
participated in the tender 
organised by the brokers, said 

that “as shareholders in very 

many UK companies, we 
strongly support moves to 
reduce the cost of capital for 
those companies". 

' “We believed it was in every- 
body’s interests to test the 
demand in the UK market 
rather than simply have an 
academic debate about pric- 
ing." said Mr Robert SwanndL 
head of UK corporate finance 

at Sehroders. 

The rights Issue te to be used 
to part-fund the acquisition of 
Metropole Hotels from Lonrho 
Stakis wfll pay £327m for the 
five-strong four-star rhain, 
which will increase the num- 
ber of rooms that Stakis oper- 
ates from 5^00 to 7,760. 


Lex, Page 28 


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IS 


FINANCIAL TIMES 


FRIDAY NOVEMBER 1 1996 



COMPANIES AND FINANCE: ASIA-PACIFIC 


Weak yen lifts profit at Mitsubishi Heavy 


By William Dawkins 
in Tokyo 

Mitsubishi Heavy Industries, 
the largest of Japan's diver- 
sified shipbuilding, aero- 
space and machinery groups, 
yesterday cited the yen's 
weakness as a factor in 
double-digit profits growth 

for the first half, and an 
improved profits forecast for 
the whole of 1996. 

The group, the industrial 
nucleus of the Mitsubishi 
corporate keirvtsi ; yesterday 
said it expected: jeij to 


High public 
spending 
helps buoy 
Komatsu 

JBy^riichiyo Nakamoto 

Komatsu, tbe world's 
second-largest maker of con- 
struction machinery, 
reported a 55 per cent rise 
in non-con so I ida ted recur- 
ring profits, as public spend- 
ing in Japan mid infrastruc- 
ture development in Asia 
supported a steady rise in 
overall sales. 

Komatsu lifted recurring 
profits from Y6.1bn to 
Y9.5bn (S83m). on sales 7 
per cent higher at Y251.4bn. 
Net profits rose 22 per cent 
to Y5.3bn. 

The company said that, 
despite a weak domestic 
market, sales of construc- 
tion equipment were lifted 
by the high public spending 
introduced as part of the 
government’s economic 
stimulus progr a mme. 

Overseas, Komatsu was 
helped by the strength of 
the US economy and infra- 
structure projects in south- 
east Asia, which triggered 
strong demand for bull- 
dozers. 

Sales of domestic indus- 
trial machin ery fell 26 per 
cent in the term. 

Komatsu expects the sec- 
ond half to be difficult amid 
economic deceleration in 
Asia and a slowdown in cap- 
ital investment by semicon- 
ductor manufacturers. 

Nevertheless, it expects 
aggressive marketing 
overseas and at home to 
help it raise sales for the 
full year, from Y500.9bn to 
Y530bn. It forecasts recur- 
ring profits of Y24bn, com- 
pared with Yl7.9bn, and net 
profits of Y12bn, against 
Yl0.4bn. 


stay near its current rate of 
around Y110 to the dollar in 
the second half, rather than 
the Y105 on which it had cal- 
culated previous projections. 

On that basis, it expects 
unconsolidated recurring 
profits - before tax and 
extraordinary items - to rise 
15.5 per cent to a record 
Y192.5bn ($1. 7bn) for the 
year to March, instead of the 
Y185bn it had forecast ear- 
lier. Mr Yoshihisa Tsuda, 
vice-president, said the yen's 
Call was helping export prof- 
its. which was mainly why 


MHI’s overall gross profit 
margins were expected to to 
rise to 14.7 per cent this year 
from 13.8 per cent last. Each 
rise of one yen against the 
dollar, when sustained over 
a year, adds YZbn to MHTs 
annual recurring profits. Mr 
Tsuda said. 

Recurring profits in the 
first six months to Septem- 
ber climbed 12.6 per cent to 
Y89.1bn. on sales up 10.2 per 
cent to Yl,l77bn. Turnover 

in the shipbuilding and steel 
structure division, represent- 
ing less than one-fifth of 


sales, rose just 0.6 pea: cent 
to Y220bn t as ship orders 
began to weaken in response 
to a decline in demand for 
new vessels. But sales at the 
aircraft and special duty 
vehicle division rose nearly 
70 per cent to YllSbn. a con- 
sequence of Increased sales 
of components for the new 
Boeing 777 airliner. 

MHTs two smaller rivals, 
Hitachi Zosen and Mitsui 
Shipb uilding also reported 

results yesterday, but they 
refrained from celebrating 
the yen's decline with an 


upgrade of profits forecasts. 
They were either being con- 
servative. or have low- 
margin shipbuilding orders 
in their yards as a result of a 
recent decline in prices, said 
Mr Matthew Ruddick, ship- 
building analyst at James 
Capel in Tokyo. 

Hitachi Zosen is forecast' 
mg a 14-8 per cent rise in 
full-year recurring profits, to 
Y30bn, on sales up 8-3 per 
cent to Y500bn. In the first 
halt Hitachi Zosen's profits 
rose 0.7 per cent to YS.lbn. 
Margins were constrained by 


a sharp rise in sales promo- 
tion costs, the company said. 
Total turnover edged up a 
mere 1.1 per cent to Yl57bn, 
held back by a 4&2 per cent 
drop in turnover at the com- 
pany's shipbuilding division. 

Mitsui Engineering and 
Shipbuilding yesterday fore- 
cast an 8 per cent rise in 
recurring profits for the frill 
year, on sales up 27.2 per 
rent to Y370m. In the first 
half, recurring profits rose 66 
per cent to Y2.Q3bn on turn- 
over up 15.4 per cent at 
Yl34bn. 


Cost cuts offset higher fuel bill at ANA 


By MSchryo Nakamoto 
in Tokyo 

ANA, one of Japan's leading 
airlines, brushed aside a 
sharp rise in fuel prices to 
report a firm increase in par- 
ent pre-tax profits for the 
first half on the strength of 
higher passenger levels and 
cost-cutting measures. 

The company lifted recur- 
ring profits 33 per cent to 
Yl7.9bn ($157. 2m). on reve- 
nues up 5 per cent at 
Y450.7bn. Net profits 
climbed 33 per cent to 
Y8.4bn. However, ANA's per- 
formance, which contrasts 
with that of Japan Airlines, 
the international carrier 
which reported lower profits 
this week, did not help its 
share price yesterday. Inves- 
tors were disappointed by a 
lower than expected full-year 
forecast, and the shares and 
fell Y12 to a new low for the 
year of Y949. 

In the first half, ANA was 


night paths 

A share prices rotative to the 
Nikkei 225 Average 

125 — — — . 


ZM 


Souca: omestraoni 

helped by expansion in 
routes and better results in 
the first and business classes 
of its international 
operations, which it attri- 
buted to a pick-up in the 
economy and the introduc- 
tion of 180-degree reclining 
seats in the first class 
section. 

International passenger 



Class act: impr o ved sales in high-priced sections helped ANA beat trends 


numbers rose 17 per cent 
over the same period last 
year, while international 
revenues were up 13 per 
cent 

Domestic passenger vol- 
ume and revenues also rose, 
although not as strongly as ' 
in the international busi- 
ness. The carrier's perfor- 
mance In the Japanese mar- 


ket was supported by price 
discounts and new services. 

ANA, like JAL. has been 
hit by higher foe! prices, 
which added Y13bn to fuel 
costs compared with the pre- 
vious first half. However, 
ANA believes it can offset 
the higher costs with a cost- 
reduction exercise In which 
it plans to cut overall costs 


by Y30bn in the year. 

Nevertheless, the airline 
forecasts full-year revenues 
at YSSObn, or Y3bn lower 
than expected, while recur- 
ring profits will be Y17-5bn, 
or Ylbn below earlier fore- 
casts. ANA blames the slow 
recovery of the economy and 
intensified competition in 
tbe domestic market 


Slow sales hit San Miguel 


By Edward Luce in Manila 

San Miguel, the Philippines' 
largest beer and food com- 
pany, said net earnings after 
non-recurring items fell 23 
per cent in the first nine 
months, to 2.99bn pesos 
($113.7m) because of lower 
beer sales and a depressed 
form sector. 

Analysts said the compa- 
ny's mounting debt - with 
financing charges rising 120 
per cent to 2.01bn pesos from 
January to June - and flat 
beer sales combined to push 
earnings down. Net revenue 
rose 9 per cent to 61bn pesos. 

San Miguel’s B-shares 
closed flat yesterday at 95 
pesos. 

"San Miguel is having a 


very bad year because of the 
depressed beer market and 
higher raw material costs,” 
said Ms Alexandra Connor, 
an analyst at W. . Carr. "The 
company has also been hit 
by higher tax charges and 
lower than expected reve- 
nues from its overseas 
operations." 

For the year as a whole, 
analysts forecast that net 
profits are likely to foil at 
least 10 per cent for the year 
as a whole. 

With its B-shares trading 
at a price /earnings ratio of 
36 - almost twice the Philip- 
pine composite average - 
brokers say San Miguel Is 
trading at an almost 100 per 
cent premium to the market. 

However, the company's 


$1.6bn overseas investment 
programme, which includes 
breweries in China, Vietnam 
and Indonesia, is not expec- 
ted to reap dividends until 
1998. San Miguel says the 
proportion of revenues from 
overseas operations will rise 
from 13 per cent in 1996 to 30 
per cent by 2000. 

The company, which 
expects to be hit by a change 
next year in the excise tax 
on "sin products” such as 
beer, said growth in most of 
its subsidiaries, including 
Coca-Cola Bottlers Philip- 
pines and San Miguel Prop- 
erties, was healthy. The 
price of raw materials was 
also falling because of the 
start of recovery in the farm 
sector. 


Tisco surprises 
with 25% rise 


ON THE ROAD TO ANOTHER 
UNREATARLE PERFORMANCE 


U na ud Hed Financial n e w ilt s (Provisional) for the 
Six Months ondad September 30, 1090 



AccouiUng 

Six Months 

Six Months Six Months 


Year ended 

ended 

ended 

ended 


31.03*6 

3008*5 

30.09-96 

304SL96 


(Rs. In MBtorts) 

(Rs.tnMHonsj 

(Rs. fri Kllkins} (US tin Mfflkms) 

Net Salas (Including excise duty) 
and income from operations 

27,938.0 

12.810.5 

15,029.2 

447.618 

Other Income (Net) 

1,382.4 

757.7 

1,095.6 

30.595 

Total rales and other Income 

29,320.4 

13^6A2 

17,12441 

47&213 

Total expenditure 

22,533.1 

10,448.7 

13,079.3 

365.242 

Interest 

99.0 

41.8 

38.6 

1.078 

Gross profit after Interest but 
before depredation & taxation 

6,6884 

3,077.7 

4,006.9 

1114)93 

Depredation 

737.1 

406.9 

558.0 

15.582 

Profit before tax 

5.951.2 

2.670.8 

3,448.9 

96.311 

Provision for taxation 

1.77O.0 

895.0 

1,190.0 

33.231 

Net Profit 

4.181.2 

1,7754! 

3^25&9 

634)80 

Profit after prior period 
adjustments 

4,168.4 

1,748.7 

2,247.4 

62.759 

Earnings per sharo-arauiatfsed (Ra/US S) 

5137 

4&94 

56.47 

1.577 

Paid up equity share capital 
Reserves (excluding revaluation 

795.9 

795.9 

795.9 

22.226 

reserves as per balance sheet of 
previous accounting year) 

13,287.0 




NOTES: 1. The above results have been taken on record in a meeting ol Board otDtrectors held on 3istOdober, 1996. 

2- The total two and Bireewheeter production and saladuring the Bret six months was 758599 and 722467 respectively. 

The correspondmg figues forffie six months ended 30th Septamtoer. 1995 were 621 .498 and 613979. 

3. The stock of vehicles on 30th September, 1996. was 45.166 as against 21,753 on 30th September, 1995. 


4. The total exports ol tfwcompany In Vie first six months were Rs.875.1 m*on aganst Rs.932.1 mtton (toting ffieste 

months ended 30th September, 1995. 





5. • The conversion rata for currency has been taken as US Si 

-Rs. £.81. 





BY ORDER OF THE BOARD OF DIRECTORS 




FOR BAJAJ AUTO LUSTED 

MUMBAI 



RAHUL BAJAJ 

DATE : October 31, 1996 


CHAIRMAN & MANAGING DIRECTOR 


By Tony Tassefl 
In Bombay 

Tata Iron and Steel Co 
(Tisco), India's second larg- 
est steelmaker, surprised the 
market with better than 
expected first-half results. 

The flaguMp of the hotels 
to trucks Tata group lifted 
net profit 25 per cent to 
Rs2.52bn ($70. Gm) in the six 
months to September 30. 
from Rs2.0ibn in the same 
period last year. The net 
profit was weU above market 
consensus of expectations of 
around Rs2jjbn, and defied 
some even gloomier fore- 
casts made earlier in the 
year. 

The results added to an 
emerging trend of better 
than expected first-half fig- 
ures from Indian companies 
over the past two weeks, 
after earlier forecasts of a 
slowing in corporate earn- 
ings growth. However, ana- 
lysts said that as the first- 
half reporting season prog- 
ressed. more negative results 
were expected. 

Tisco’s net' profit would 
have been even higher but 
for the imposition of a 12.9 
per cent minimum corporate 
tax by the Indian govern- 
ment in its July budget. This 


lifted its tax hill from 
nothing last year to 
Rs3725m. 

Mr Anurag Matbur, 
analyst with Peregrine 
Securities, said Tisco had 
managed to shrug off cost 
increases with improved 
sales volumes, and a 4 per 
cent average rise in product 
prices in April. This saw 
operating margins widen 
slightly, to 20.6 per cent com- 
pared with 20.4 per cent last 
year. 

Tisco boosted its sales by 
RsS0-2lbn in the first half, 
from Rs24.96bn. Production 
rose marginally, to 1.33m 
tonnes from 1.32m tonnes. 
However, the overall volume 
of steel increased 8 per cent 
to 1.194m tonnes from 1.108m 
tonnes as Tisco sold down 
inventory levels. 

Sales of hot rolled colls 
rose from 282,000 tonnes in 
the first-half to 436,000 
tonnes. Cement sales also 
rose, to 629,000 tonnes from 
436.000 tonnes. 

Shares in Tisco fell Rs6.75 
to RslSO ahead of the release 
of the results, after the close 
of trade. However, in 
unofficial after-hours 
trading, the stock climbed 
back to Rsl83 in response to 
the figures. 


ASIA-PACIFIC NEWS DIGEST 


India automakers 
ease industry fears 

Concerns over a potential slowdown to the fodlan .a «to 
Industry have been eased by strong tot-haff rratots from 
two leading sector companies, Bajaj Auto and Mahtodra & 
Mahtodra. Bajaj Auto, the world's largest manufacturer 
of scooters, lifted net profits 27 per cent toRs2.25bn 
($G3m) in the six months to September 30, from Ksi.77Dn 
in the same period last year. 

Mahtodra & Mahtodra. the utility vehicle maker which 
is now producing Escort cars under a Joint venture witn 
Ford, lifted net profit by 25 per cent from Rs738.im to 
Rs924_3m. Analysts said both sets of results were largely 
to line with expectations, and had eased fears of an 
slowdown in demand for vehicles and inventory build-ups 
amid a slowing to economic growth this year. 

Tony TosseO. Bombay 

Tough year for Lion Nathan 

Lion Nathan, the New Zealand brewer, reported a 25.7 per 
cent drop in earnings to NZ$150.4m (US$l06.im). which it 
blamed on a “tough” year in its Australian brewing 
busin ess , sharply higher tax and currency chan ges. 
However the company, the biggest liquor group In 
Australia and New Zealand, said its expansion into China 
was going well, and that the New Zealand liquor and soft 
drinks businesses showed improved ear nin gs. 

F-nrainpg for the year at the Australian brewing 
operations - which include XXXX, Tooheys and Swan - 
fell 243 per rent to A$243.4m (US$19Sm>. although sales 
revenue rose slightly to AS1.5bn. Terry Hall Wellington 

Japanese chemicals mixed. 

Japanese chemical companies yesterday reported mixed 
interim results, amid sluggish demand for petroch emi cal 
products and synthetic fibres, rising costs for raw 
materials, and higher capital spending. 

Mitsubishi Chemicals, the country’s largest general 
rfripmi rials manufac turer, announced a 98.2 per cent 
plunge in unconsolidated recurring profits to Y2.19bn 
($19 .3m), because of declining markets for its mainstay 
petrochemical products, and rising prices of raw 
materials. 

Mitsui Petrochemical Industries, the leading maker of 
synthetic textile materials, suffered a 10 per cent fell in 
unconsolidated recurring profit, to Y7.65bn. Net profits 
fell 1 per cent to Y5.31bn on sales of Y153.85bn. down 3.7 
percent. 

Hitantii Chemical, a synthetic resins processor and 
producer of molded parts for vehicles and housing 
equipment, reported an increase in interim earnings in 
spite of a slight fall In sales. Unconsolidated recurring 
profit rose to Y5.5bn from Y4.8bn a year ear lira-, while 
sales were Y125.6bn, down from last year's YL27.2bn. For 
the full year, Hitachi Chemical expects recurring profits 
of Yll.2bn on sales of Y257bn. 

Nissan Chemical Industries, meanwhile, reported 
robust naming s growth on increased exports of its core 
chemicals, helped by the dollar's rise against the yen. 
Unconsolidated recurring profit rose 25.7 per cent to 
Y2.16bn. on sales of Y44.9bn, up 1.4 per cent. Net profit 
grew 28.8 per cent to Y969m. Gioen Robinson, Tokyo 

Mitsubishi Materials surges 

Mitsubishi Materials, Japan's leading manufacturer of 
metals and ceramics, reported an increase of 90.4 per cent 
in first-half unconsolidated recurring profit, to Y5.13bn 
($45m), on brisk sales of cement and silicon, the main 
material for microchip production. The weakening of the 
yen against the dollar, and continued low Interest rates to 
Japan helped boast the result. 

Sales to the first half rose 3.5 per cent to Y361.88bn, on 
rising exports. Net profit surged 288.2 per cent to Y2.21bn, 
or Yl.94 per share. 

Japan's thlrd-largest copper producer, Sumitomo Metal 
Mining, also announced Increased first-half profits of 
Y6.48bn, up from Y2.85bn, while sales edged up to 
Y2QQ.2bn from last year’s Y198.7bn. For the full year to 
March, Sumitomo Metal expects recurring profits of 
Y12bn on sales of Y410bn. Given Robinson 

Nikon weathers chip downturn 

Nikon, the Japanese maker of cameras and semiconductor 
manufacturing equipment, weathered the downturn to 
the semiconductor market, and doubled recurring profits 
in the first half, to YlO.Sbn ($92m). The increase came on 
the strength of buoyant demand for its steppers, which 
are used to manufacture semiconductors. Net profits 
totalled Y5.8bn, compared with Y2J3bn a year earlier. 

Parent company sales rose 31 per cent, to YlSl.Bbn. The 
rise was attributed mainly to an increase to sales of its 
semiconductor mantoacturing equipment, which 
commands high prices. Michiyo Nakamoto, Tokyo 


Orogen institutional offer at A$2 


By Nikki Tait in Sydney 

The institutional sale price 
for shares to Orogen Miner- 
als. the company set up to 
hold the Papua New Guinea 
government's interests in 
various local resource pro- 
jects. was set yesterday at 
AS2 a share - a 17.6 per cent 
premium to the price at 
which they were offered to 
the general public to Austra- 
lia and New Zealand. 

The institutional price val- 
ues Orogen at A$642.5m 
(US$508. 7m; and raises 
around A $237. 7m of new cap- 
ital for the company. This 
will be used to part to com- 
plete Orogen 's purchase of a 
20.5 per cent stake in the 
Go be oil fields, due to come 
on stream in 1998. 

After the sale, the govern- 


ment-owned Mineral 
Resources Development 
Company will continue to 
own a contro llin g 51 per cent 
stake in Orogen. The 
remaining shares are due to 
start trading on the Austra- 
lian Stock Exchange this 
morning. 

Mr David Beatty, Orogen’s 
Canadian-born chairman 
and a former economic 
adviser to the PNG govern- 
ment. said yesterday the 
company had been 
“delighted" with the interest 
shown to the offer. Accord- 
ing to Orogen, more than 360 
institutions applied for more 
than A$2bn of shares. The 
institutional demand was 
spread across two dozen 
countries. 

Orogen said that of the 
153.7m shares put up for 


sale, about one-fifth would 
go to Australian retail Inves- 
tors, who were offered 
shares at a fixed price of 
AJl.70. A further one-fifth 
would go to retail and insti- 
tutional investors in Papua 
New Guinea. They were also 
offered shares a fixed price, 
set at K1.57 for the first 2,000 
shares and at K1.75 beyond 
this. 

The remaining 60 per cent 
will be allocated at A$z a 
share to institutional inves- 
tors - both PNG-based and 
international - who applied 
under the global offering, 

Orogen said yesterday it 
was particularly pleased that 
6,500 retail investors to PNG 
had applied for shares. In 
total, about 30 per cent of 
shares being sold should end 
up to PNG-based hands. At 


present, the country does 
not have a stock exchange - 
although the government 
has expressed enthusiasm 
for establishing one - so this 
stock will have to be traded 
through Australia. 

The Orogen float is one of 
the first privatisations to the 
resource-rich but economi- 
cally troubled Pacific coun- 
try. to 1995, PNG agreed a 
"structural adjustment pro- 
gramme” with the World 
Bank in return for financial 
support, although there has 
been dispute over PNG's 
progress and a second loan 
tranche has been withheld. 

The resource projects in 
which Orogen has invest- 
ments include tbe Porgera, 
Minima and Lihir goldmines, 
and tbe Kutubu and Go be oil 
projects. 


Production up by 22% • Turnover up fay 26% • Profit up by 27% 


@bijart!lli 

Akurdi, Pune 411 035. INDIA. 


rmfihhd/Mii<q/HAlJ964S 


SINO LAND COMPANY LIMITED 


US$200,000,000 5% Convertible Bonds due 2001 (“Bonds”) 

NOTICE TO BONDHOLDERS 

The Directors ol Slno Land Company Limited (Hie Company - ) on 1st 
October, 1996 proposed a final dividend ol HKS0.12 per share [with an 
option fcr scrip dhrtdend) lor the year ended 30th June, 1996 to shareholders 
whose names appear on the register ol members on 22nd November. 1996. 
This final dtvkjend Is payable on 20th December, 1996. 

This Anal dividend Is subject to the approval ol shareholders ol the Company 
al the Annual General Meeting to be held on 22nd November, 1996. The 
dividend warrants wB be despatched on or aboul 20th December, 1996. 

The register of members ol the Company wfl be dosed bom 18th November, 
1996 10 22nd November, 1996 (both dates Inclusive). 

Registered holders of existing Bands who wish to exercise their conversion 
nghts attaching to their Bonds so as to be entitled to the said final dhndand 
should lodge the property completed and signed conversion farms together 
with the bond certificates with their Agent so as to reach the Company 
before 4.00 pm (Hong Kong time) on 22nd November, 1096. 

By Order of the Beam 
EriclpSai K wrong 
Secretary 

3Tst October 1996 Hong Kong 


flSlii!333S3QB9i!3Q.3B 


Residential Property Securities No.4 PLC 


£?XKOObflO0 £180,000,000 

Class Al Notes Class A2 Notes 

Mortgage Backed Floating Rate Notes due 2023 

In accordance with the protisions of the Note*, notice is hcrcfcr men 
that for the three month period 3ht October 1996 to 31st Julv 1997. 
the Class Al Not® and cl** A’ Notes will car™ u, imcrest ralc of 
6.4312S?b and 6.506251 d per annum respectively. The interest 
I P avablc per 1100.000 Note will be A762.00 for the Class Al Notes and 
£1.639.93 lor the Class A2 Nut« 








^ancial TIMjes 


FRIDAY NOVEMBER 1 1996 




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Merrill Lynch 

on opening markets 
by opening 


es 


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Asia, knowledge is a powerful economic development 
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20 


t 


FINANCIAL TIMES FRIDAY NOVEMBER l 1996 



EUROPEAN NEWS DIGEST 

Strong demand 
lifts Borealis 

Strong demand for raw materials for the plastics 
Industries boosted third-quarter profits at Borealis, the 
polyolefins joint venture between Norway's StatofI and 
Finland's Neste with its headquarters near Copenhagen- 
Third -quarter pre-tax profits were DKr302m <S52_2m), 
taking profits for the first nine months to DKr466m 
against DKr2.99bn after nine months bust year. In the 
third quarter of last year, when industry margin were 
very high, profits were DKr636m. 

Sales for the quarter fell 1.7 per cent, from DKr4-14bn 
last year to DKr4.08bn, while after nine months sales were 
down 16.7 per cent, from DKrUL84bn to DKrll-54bn, 
Borealis said the third-quarter improvement was driven 
by higher volume sales, better prices and cost reductions. 
Toward the end of the quarter, highe r feedstock prices, 
reflecting strong prices for crude oil, partly offset higher 
polyolefin prices, the interim statement said. 

The group said its "value for money" improvement 
programme, aimed at improving processes and efficiency, 
had already achieved Its target for the year - a net 
benefit of DKrSOOm. As a result of the programme, fixed 
costs were on a f alling trend. 

An important next step in the value for money 
programme is the transfer of small-volume sales In 
Europe to the European chemicals distribution group, 
Ashland Plastics, which will leave Borealis to concentrate 
on marketing to its big customers. The transfer takes 
place in the current quarter. Borealis said the early days 
of the fourth quarter had brought further improvements 
which would contribute to profit s for the year. 

Hilary Barnes, Copenhagen 

RWE wins telecoms licence 

RWE Telliance yesterday became the second German 
company to be awarded a licence to provide a nationwide 
telecommunications network in competition with 
Deutsche Telekom, the post and telecoms ministry 
announced yesterday. 

The company, a subsidiary of the RWE power supply 
group, will be able to provide liberalised services such as 
data transmission on its already existing 8,000km 
fibre-optic cable system. A public telephone service will 
have to await full liberalisation of the German 
telecommunications market from January 1998. 

The ministry awarded a nationwide licence to Vebacom, 
the telecoms subsidiary of the Veba conglomerate, last 
month and has also awarded eight regional licences. The 
European Commission stipulated that two nationwide 
licences should be issued by today as one of the 
conditions for allowing Telekom to introduce corporate 
client rebates. Peter Norman. Bonn 

CME increases US offering 

Central European Media Enterprises (CME). the US 
pioneer of private commercial television in eastern 
Europe, has increased its US stock offering from 3m to 
4 .Sm shares in response to strong investor demand. The 
issue has been priced at $27.50 a share, which would allow 
the company to raise gross proceeds of $132m. CME, 
which began broadcasting in the Czech Republic with 
Nova TV in February 1994. is Nasdaq-quoted and is 
controlled by Mr Ronald Lauder, one of the heirs to the 
Estee Lauder cosmetics fortune. 

The underwriting group for the share issue, led by 
Schroder Wertheim. Prudential Securities and Smith 
Barney, has been offered options to purchase an 
additional 720,000 shares, which could increase total gross 
proceeds from the issue to about $l50zn. 

CME is co-owner of the leading commercial television 
stations in the Czech Republic. Romania. Slovenia and 
Slovakia and has growing interests in Ukraine, where it 
has plans to apply for licences to develop a new national 
television station. It is expected to be one of the 
front-runners in the forthcoming tenders for national 
licences in Hungary, and last month was awarded Its first 
broadcasting licences in Poland, the biggest single market 
in central Europe. 

The group has previously raised gross proceeds of 
$168m. from an initial public offering in October 1994 
($76m>. and a second issue in November last year ($92m). 
CME and its joint venture partners are broadcasting to 
86m people, including 77m in eastern Europe and 9m in 
Germany. In Romania, the group is seeking to expand its 
operations from TV into telecoms. 

Kevin Done, East Europe Correspondent 

Traub unit bankruptcy filing 

Traub. the German machine tool maker, said its 
wholly-owned subsidiary Heckert Chemnitzer 
Werkzeugmaschinen had filed for bankruptcy yesterday 
in Chemnitz, Germany. The court appointed Mr Klaus 
Siemon temporary receiver, said Traub. which on October 
15 filed for insolvency owing to an "inability to pay" its 
creditors, of which the largest is Deutsche Bank. If talks 
with the creditors on a repayment scheme fail. Traub 
could be forced into bankruptcy. AP-Dow Jones, Bonn 

Nycomed revamp welcomed 

Shares in Norwegian pharmaceuticals group Nycomed 
rose strongly yesterday on the company’s announcement 
of a series of measures to cut costs and restructure 
operations. Nycomed's shares surged NKr5.50. or 6 per 
cent, to NKr88.50. The group said it expected to make 
savings or NKr600m i $94 :2m) from a new programme. 
Focus '93. designed to adjust the group's strategy to 
reduce costs in some areas and Increase investment in 
others. The savings are expected to be take effect by 1998. 

"This is what the market has been waiting for." said 
one Oslo-based broker. “Restructuring, cost-cutting and a 
refocus. The market is bullish on this. In the short run. 
we see potential of la share price for the A stock] of 
NKrlOO." Nycomed announced the programme while 
posting 1996 nine-months pre-tax profits down 32 per cent 
on last year, from NKrl.32bn to NKr898m. Reuter, Oslo 

Alcatel sells Lafarge stake 

Alcatel Alsthom, the French power and electronics group, 
said it had sold its 24! per cent stake in Lafarge to Lafarge 
itself for FFr650m <S129.5m). The 2.12m shares changed 
hands for FFr310 each. The sale was part of Alcatel's 
divestment programme, announced by Mr Serge Tchuruk, 
chairman and managing director, which is expected to 
bring in FFrlObn by the end of the year. AFX News, Paris 

Snecma buys out subsidiary 

Snecma. the French aviation engine group, yesterday bid 
FFr625 each Tor all outstanding shares in its subsidiary 
Soci6te Europ£ene de Propulsion, in which it holds a 51426 
per cent stake, the French bourse authority SBF said. SEP 
shares, which have been suspended on the secondary 
market since October 23, will remain suspended until 
further notice. AFX News, Paris 

ABN Amro arm in SA move 

ABN Amro, the Dutch bank, said its securities subsidiary 
ABN Amro Hoare Govett, owned jointly with Kagiso 
Financial Services of South Africa, acquired a 40 per cent 
interest in South African stockbroker Huysamer Stals. 
ABN Amro also acquired a minority stake in Kagiso 
Financial Services, whose largest shareholders are 
N.M. Rothschilds & Sons and Kagiso Trust Investment 
company of South Africa. ABN Amro declined to 
comment on how the 40 per cent interest in Huysamer 
Stals is divided between ABN Amro Hoare Govett and 
KFS, or on how big a stake it is taking in KFS. 

AFX News. Amsterdam 


COMPANIES AND FINANCE: EUROPE 


Dresdner confirms direct banking plans 


By Andrew Fisher 
In Frankfurt 

Dresdner Bank yesterday 
announced a 30 per cent rise 
in operating profits to 
DM1.89bn ($1.25bn) for the 
first nine months and con- 
firmed plans to open a direct 
banking operation next year. 

The improved result was 
in line with the performance 
at the halfway stage, 
although Mr JOrgen Sarra- 

rin . chairman, said recently 
growth had slowed in the 

third quarter. The bank 
repeated its forecast that the 
full year’s result would show 
a “marked double-digit" per- 
centage increase. The shares 
fell 50 pfennigs to close at 

DM40.50. 


The German bank has 
already made nearly as 
much profit in the January- 
September period as in the 
whole of 1995, when operat- 
ing profits rose 22 per cent to 
DM1.99bn. The improvement 
reflects the first- time inclu- 
sion of Kleinwort Benson, 
the UK merchant bank 
acquired last year. 

Commission profits 
remained buoyant, with a 42 
per cent jump to DM2.82bn. 
reflecting strong securities 

business. Kleinwort Benson 
alone lifted the bank's fee 
income by more than 25 per 
cent Interest income was 8 
per cent higher at DMSbn. 
Own-account financial trad- 
ing profits were 15 per cent 
lower at DM456m. but the 


bask said profits yet to be 
realised would lead to a rise 
of at least 10 per cent for the 
full year. 

The integration of Klein- 
wort Benson pushed costs up 
18 per cent to DM6. lb m the 
rise would have been 5 per 
cent without the UK mer- 
chant bank. Loan-loss provi- 
sions were 10 per cent higher 
at DMB57m - with further 
funds set aside for risks 
among medium-sized compa- 
nies - while profits from 
securities in the liquidity 
portfolio rose 105 per cent to 
an “unusually high" 
DM6G5m. This followed sales 
of bonds and industrial 
shareh ol ding s of less th an 5 
per cent. 

Mr Sarrazin said Dresd- 


ner’s new direct banking 
operation, to be run from 
Duisburg in the Rohr region, 
would start in the second 
half of 1997 and offer attrac- 
tive products and a high 
level of advice- Dresdner 
would give more details on 
Monday. 

Deutsche Bank and Com- 
merzbank opened direct 
banking operations last year 
- with Bank 24 and Comdi- 
reet respectively. Bayerische 
Vereinsbank launched 
Advance Bank in March, lay- 
ing stress on investment 
advice and cash manage- 
ment. Citibank of the US 
also operates a direct bank 
in Germany. 

Mr Sarrazin said Dresdner 
would push ahead next year 


with changes in retail 
banking, making greater use 
of technology to free staff 
for customer advice. He 
repeated the bank’s goal 
of cutting its cost/income 
ratio to well below 7D per 
cent 

• BHF-Bank was confident 
It could survive as an inde- 
pendent bank at a time of 
speculation about possible 
mergers in German banking. 
Mr Wolfgang Struts, chair- 
man, pai d Allianz, the insur- 
ance group, owns around 15 
per cent of the bank, but 
does not regard this as a 
strategic holding. Mr Strutz 
said he was sure Allianz 
would not sell against the 
bank’s wishes. 

He was speaking after 


announcing a 7 per cent rise 
in operating profits, to 
DM2 58m. in the first nine 
months, with interest 
income up 5 per cent at 
DM5 68m and commission 
income 5 per cent higher at 
DM3S3m. , 

Own -account trading prof- 
its were flat at DM67tn. Cast 
growth was kept at 5 per 
cent 

Mr Wolfgang Strutz said 
medium-sized and specialist 
still had an important 

role to play in Europe. BHF- 
Bank. often mentioned as a 
possible takeover candidate, 
has been concentrating on 
investment banking and 
advisory business, and mov- 
ing away from corporate 
lending. 


KNP upbeat on year 
despite third-term fall 


By Gordon Cramb 
in A ms terd a m 

KNP BT. the Dutch paper, 
packaging and distribution 
group, has maintained its 
fiiD-year earning* forecast in 
spite of 67.2 per cent fall in 
third-quarter net profits to 
FI 38m ($ 22 .5m). 

When reporting interim 
net ear ning s of FI 101m this 
summer, it said the second 
half should be "somewhat 
higher" than that. The 
company reiterated this 
yesterday, noting that the 
final three months of the 
year were traditionally Us 
best. 

This will require an after- 
tax result in the current 
quarter above FI 63m, 
compared with the FI 76m 
posted in the same period of 
1995. 

Although that was struck 
after a FI 75m extraordinary 
charge to cover write-offs on 


divestments, it came at a 
time when paper prices 
remained strong. 

KNP, led by chairman Mr 
Frank de Wit, said yesterday 
"a first increase of paper 
prices" was achieved In the 
July-Septexnber quarter after 
a slide earlier this year left 
values for some grades near 
historic lows. The shares 
closed down FI 0.60 at 
FI 37.40. 

Five weeks ago the group 
said It was seeking an indus- 
try partner for KNP Leykam, 
its paper division. It said it 
was halting new investment 
in the unit and implied it 
would even consider leaving 
the sector. 

Yesterday KNP sought to 
retreat from that position. 
Although it was seeking an 
alliance, "we still regard 
paper production as a core 
activity at this moment", an 
official said. Whether this 
left it with a minority stake 


in the division "could be dis- 
cussed". 

KNP declined to say 
whether it was yet in talks 
with any potential partner. 

Leykam Incurred an oper- 
ating loss of FI 7m in the lat- 
est quarter. This compares 
with profits of FI 108m a 
year earlier, but is a reduc- 
tion from the FI 17m operat- 
ing deficit in the preceding 
quarter. "Although sales vol- 
umes were good, margins 
were still at a very low 
level,” the company said. 

Its packaging side pro- 
duced operating profits of 
FI 57m against FI 39m, with 
the Increase attributed to 
stable raw material prices, 
better volumes, and cost 
reductions. But there was a 
dip at the distribution divi- 
sion. from F16lm to FI 58m. 
The 70 per cent-owned BT 
Office Products International 
contributed less than expec- 
ted. 



Framatome chief attacks merger plan 


By David Owen in Paris 

The head of Framatome 
yesterday hit out at propos- 
als to merge the French 
nuclear plant and fuel manu- 
facturer with the GEC Als- 
thom power engineering and 
transport equipment group. 

He warned the plans could 
pose a threat to the 
long-term survival of 
France's nuclear network 
and its ability to pursue an 
independent energy policy. 

Mr Jean -Claude Leny told 
the economic affairs commis- 


sion of the French Senate 
that a merger could harm 
co-operation with Germany 
on the replacement of 
Europe’s existing nuclear 
power stations. 

He also suggested there 
were few synergies between 
the activities of Framatome 
and GEC Alsthom, a joint 
venture between Alcatel Als- 
thom, the French telecoms 
and engineering group, and 
the UK’s General Electric 
Company. The only possible 
synergy was in turbine man- 
ufacturing, he said, and this 


accounted for only 3 per cent 
of the group's activities. 

The comments of the 
Framatome chairman, who 
is expected to stand down at 
the end of the year, came 
two months after it emerged 
that Alcatel and GEC were 
discussing the merger, 
which would create the 
world's second-largest power 
engineering group. 

But the idea of allowing a 
foreign company to take a 
stake in France’s nuclear 
industry provoked much 
criticism. Alcatel, which 


owns 44 per cent of 
Framatome, recently 
reached an agreement with 
other shareholders to retain 
majority French control of 
the world's largest nuclear 
plant builder if GEC takes 
an interest. 

Framatome has completed 
more than 60 reactors and 
was responsible for the 
atomic power programme 
which supplies France with 
70 per cent of its electricity. 
In 1989. Framatome formed a 
joint venture with Siemens 
of Germany to develop a 


reactor - called a European 
pressurised water reactor - 
for France and Germany, 
and for export. 

• France’s privatisation 
commission is unlikely to 
pronounce on the French 
government's proposals to 
sell the Thomson defence 
and consumer electronics 
group to Lagardfere until 
December or early 1997, Mr 
Jean Arthuis, French 
finance minister, indicated 
yesterday. 

The process is expected to 
be a formality. 


Strong economy lifts Den norske Bank 


By Hugh Camegy 
in Stockholm 

A strong Norwegian 
economy helped Den norske 
Bank, the country’s biggest 
financial services group, to 
increase profits in the first 
nine months of the year, in 
spite of a slowdown in a 
recent trend of writing back 
provisions made against 
loan losses. 

Pre-tax operating profits 
rose from NKr2.1bn to 
NKr2J2bn (S346m) during the 
period. 


Underlying earnings 
growth was stronger, as 
operating profits before 
write-backs grew from 
NKrl.73bn to NKrl.9bn. 

The increase was helped 
by a near 4 per cent fall in 
operating costs, from 
NKr3.5bn to NKr3.36bn, as 
the bank reduced staff num- 
bers by 470 to 5,627. The 
shares fell NKrO.30 to close 
at NQ21.10. 

But Mr Finn Hvistendahl, 
chief executive, said perfor- 
mance was lifted by strong 
growth in the economy, a 


rise in lending to Norway’s 
important shipping sector, 
and benefits from the take- 
over early this year of Vital, 
the Insurance company. In 
the third quarter, operating 
profits before write-backs 
rose from NKr563m a year 
ago to NKr613m. 

The rise in lending 
demand enabled DnB to sus- 
tain net interest income at 
almost unchanged levels 
despite narrowing margins 
between lending and deposit 
Interest rates. Net interest 
income in the first nine 


months fell slightly, from 
NKr3.I9bn to NKr3-17bn. 

DnB continued to show 
gains from write-backs of 
provisions made against 
loan losses during the loan- 
loss crisis of the early 1990s - 
but at lower levels. Write- 
backs in the first nine 
months dropped from 
NKr374m to NKr303m. 

The bank also benefited 
from low tax charges result- 
ing from the carry-forward 
of previous tax losses sus- 
tained during the crisis. DnB 
showed ta* charges in thp 


first nine months of just 
NKrlTm. leaving net profits 
up from NKr2.1bn at 
NKr2^bn. 

• Christiania Bank, Nor- 
way’s second-largest bank- 
ing group, announced yester- 
day that Mr Tom Ruud, 
former chief executive of the 
industrial group Aker, will 
take over as chief executive 
of the bank next year. 

Mr Ruud will succeed Mr 
Borger Lenth. who is to 
retire by mid-1997. The new 
chief executive parted com- 
pany with Aker last month. 


Polish 

builder 

faces 

collapse 

By Christopher Bobinski 
In Warsaw 

Espepebe is Poland's first 
listed company to face bank- 
ruptcy since the revival of 
the Warsaw Stock Exchange 
five years ago. 

Unto yesterday, shares in 
the troubled construction 
company had fallen 45 per 
cent since last week. Yester- 
day, bargain banters forced 
the stock up 10 per cent. 

The company is controlled 
by the acquisitive Bank IG. 
which took a strategic stake 
in Bank Gdansk] when it 
was privatised at the end of 
last year. Bank Gdansk! and 
Bel Leasing, a Bank IG sub- 
sidiary, together hold a 22 
per cent stake in Espepebe. 

The collapse in the share 
price, which cut Espepebe' s 
market value from 12.4 zlo- 
tys ($4.4m) to 6.8m zlotys 
followed an admission by 
Mr Andrzej Hass, the new 
manag in g director, that his 
company would go bankrupt 
unless creditors agreed to 
forgive 80 per cent of 35m 
zlotys in debts. Mr Hass also 
wants to renegotiate some of 
Espepebe’s loss-making con- 
tracts. 

Nevertheless, the fall in 
the stock price, which left 
the Szczecin-based builder 
with a price to book value 
ratio of 0.45, has encouraged 
investors to buy into the 
company. Around 7 per cent 
of its equity changed hands 
yesterday and the day 
before, when the share price 
was at its lowest. 

Espepebe, which reported 
a 17.8m zlotys net loss last 
year, faces a deficit this year 
of 30m zlotys, according to 
Mr Hass. The company’s 
problems stem from an 
aggressive marketing policy 
which sought contracts at 
any price, leaving no room 
for profit. This was coupled 
with ambitious and misman- 
aged plans for housing and 
shopping developments 
which further affected the 
balance sheet. 

Espepebe’s situation con- 
trasts with the performance 
of the WSE’s other listed 
construction companies, 
which account for 6 per cent 
of the market’s $7.7bn capi- 
talisation. The sector as a 
whole is reporting a price to 
book value of 2.02. 


US brewer leaves Budvar fighting for identity 


Czech group faces marketing challenge after collapse of brand rights talks with Anheuser-Busch 


B udejo vicky Budvar. 
the Czech brewer, will 
have to start forging a 
new identity for itself after 
the recent breakdown of a 
20 -year effort to resolve a 
dispute over the Budweiser 
name with Anheuser-Busch, 
the world's largest brewer. 

The US brewer recently 
aborted tbe talks, encour- 
aged by its growing success 
and by court victories giving 
it a clear right to the Bud- 
weiser name it failed to gain 
at the negotiating table. It 
has had nine wins in Euro- 
pean countries - five in the 
past year - and has 27 cases 
under way. 

With the legal tide run- 
ning strongly against it. 
Budvar. based in Ceske 

Budejovice. the Czech town 
known as Budweis in the 
Austro-Hungarian era. will 
have to stop using the name 
Budweiser on its bottles, sev- 
eral of its international com- 
petitors believe. 

“The advantages of an 
agreement have fallen 
away." said Mr Jack Purnell, 
chairman of Anheuser-Busch 
international, the US brew- 
er’s overseas arm. 

“We have achieved undis- 
puted access to Europe for 
Budweiser and Bud", its two 
main brand names. It will 
sell about 30m cases, 
roughly 2.2m hectolitres of 


the beer in Europe this year, 
up 25 per cent from last year 
and about five times greater 
than Bud var’s total exports. 

But meeting across a court 
room rather around a negoti- 
ating table will present both 
parties with commercial 
risks and costs, fellow brew- 
ers believe. 

Anheuser-Busch, for exam- 
ple, recently pulled out of a 
$i45m Vietnamese brewing 
joint venture because Bud- 
var registered the Budweiser 
name there in 1960. The US 
company said it was confi- 
dent the country’s trade- 
mark authorities would can- 
cel Budvar’s registration. 

For Budvar. global legal 
proceedings could damp 
investor interest when it is 
privatised. The brewer is 
almost the only Czech enter- 
prise still locked In the arms 

of the state. 

he privatisation 
“doesn’t depend on 
[the trademark) dis- 
cussion”. says Mr Josef Lux. 
Czech agriculture minister. 
Anheuser-Busch is not 
excluded from the sell-off, he 
adds, although it Is unlikely 
to be considered while its 
threat of court action in 
Europe hangs in the air. 

Anheuser-Busch was ham- 
pered in its efforts to per- 
suade Budvar to settle by its 




sheer size and by a convic- 
tion among Czechs that tbe 
giant wanted to "wipe [Bud- 
var] off the face of the 
earth", as the brewery's gen- 
eral director. Mr Jiri Bocek, 
claimed recently. 


A 1911 agreement signed 
with Anheuser-Busch gave 
the Czech brewery rights to 
the Budweiser name in con- 
tinental Europe, with the US 
company taking the rest of 
the world. Over recent 


decades, however, the agree- 
ment has failed to accommo- 
date the two companies* 
aspirations. 

Budvar gave increasing 
prominence to the name 
Budweiser on its labels, 
arguing it guaranteed con- 
sumers a place of origin and 
quality much like France's 
appellation amtroltee system. 
Anheuser-Busch believed 
Budvar was just cashing m 
on tbe international brand 
name H bad created. 

Anheuser-Busch at first 
linked, a trademark settle- 
ment to its taking a stake in 
Budvar. But it became clear 
that such an agreement was 
unacceptable, both politi- 
cally - to the government - 
and commercially, to Bud- 
var. which insisted it did not 
need a foreign partner to 
help It market beer overseas. 

The US brewery dropped 
that tactic two years ago and 
at tbe same time began 
piecemeal court action in 
various countries. The Czech 
brewer adopted a more pro- 
fessional and hardnosed 
approach to the trademark 
talks, hiring financial advis- 
ers to sketch Its future and 
draw up privatisation plans 

Last September, both sides 
met in St Louis. Missouri 
headquarters of Anheuser- 
Busch, to try to break the 
deadlock. But that attempt 


foundered on their differing 
estimates of the value of a 
settlement The US company 
is understood to have offered 
Budvar $200m for a new 
trademark agreement and a 
separate deal on the pur- 
chase of Czech hops. 

Budvar and the agricul- 
ture ministry, which led the 
talks on the Czech side, is 
believed to have put a value 
on the settlement of $ibn. 

B udvar also welcomed 
the end of the trade- 
mark talks, saying it 
had shown its ability In the 
past five years to build up its 
own export sales. It has a 
strong position in the Ger- 
man market for imported 
beers and also sells In tbe 
UK. alongside US Budweiser. 

“At 450.000 litres of 
exports, the Budvar brand is 
only worth about £50m 
($81 ,5m) and the brewery 
itself another £25m-£30m." 
says a competing interna- 
tional brewer. So success- 
fully has Anheuser-Busch 
pushed the Budweiser name 
globally that “whoever buys 
Budvar has got to start 
afresh to build a new iden- 
tity separate from the Amer- 
ican Budweiser". 

Vincent Boland 
Roderick Oram 



■) 



(> 

\ 


i 


4 







21 


WNANClALTTMirg 


FRIDAY NOVEMBER 1 1996 




COMPANIES; Ft IRDpf 


european^evv^^ig^t 

Strong result at 
SPT Telecom 

St^rofiTrS^d 68 

Comiraratiye figures with the first three quarters of 3995 
were^iot available because the company this year adopted 
mterational accounting standards, which are different 
from the Czech standards it used in earlier years. SPT 

aUof S*? 18 * proQts 01 Kc7bn m revenues of Kc26.4bn for 

ninths 272.000 new lines were installed, and 
sft said it was confident of achieving its 1996 target of 
mwe than 400,000 new lines. SPT had 2.67m installed lines 
at September 3R It is undertaking a big modernisation 
onve to expand its network and spent more than Kc20bn 
m the period, more than the full-year investment 
programme for 1995. Vincent Boland, Prague 

De Benedetti in dealing probe 

La wyers for Mr Carlo De Benedetti, former ^afrman of 
Olivetti, yesterday confirmed press reports he was unitor 
investigation by Turin magistrates for alleged insider 
dealing in shares of the troubled Italian information 
technology and telecoms group. 

l|5r De Benedettl’s lawyers also said he would shortly be 
presenting documents to Turin magistrates to refute any 
suggestions of insider trading of Olivetti shares. The 
investigation is understood to relate to events at the end 
of August just before the publication of Olivetti’s 
accounts that were to reveal fresh losses of L440bn 
($290ru). 

In a separate development, Consob, the Italian stock 
exchange watchdog; is reported to have requested more 
information from Olivetti regarding same of its factoring 
activities and the valuation of the sale of a 14.7 per cent 
stake in Acorn, the UK-based software company. 

Robert Graham. Rome 

SSAB hit by lower prices 

SSAB, the Swedish steel 
maker, posted profits after 
financial items for the first 
nine months down 44 per 
cent from SKrJL8S9bn to 
SKrl-603bn (J245m). The 
results were slightly below 
expectations, but the 
shares closed up SKrO.50 at 
SKr96. Net profits fell from 
SKr2.093bh to SKrl.l37bn 

and aamhipi pay shar p 

from SKr 15.80 to SKrS.90. 
Operating profits dropped 
from SKr2.6i8bn to 
SKrL297bn on sales down 
from SKrl4.08bnto 
SKrl3.03bn. SSAB said it 
had decided to invest 


ABfltfSvarWert GerteraHhcfot 


^90‘ 






v-'r 

moiti 


mmm 


SKr500m in Its Plannja HardTech unit. Of this 
investment, SKr440m would be used to build a new 
production unit In North America and SKr6Qm to expand . 
its existing plants in Luleaa in Sweden. SSAB reiterated 
ite previous forej^stthqtfidl year profits would be half of 
those repeated m'jL99$. $SAB ^isteef prices bad fallen * 
since .the fourth quarter of 1996 and continued to be 
pressured, which was expected to lead to additional 
deterioration of margins in steel operations In the fourth _ 
quarter of the year. 

But it said there were signs that prices were how 
stabilising. The company said it expected fourth quarter 
deliveries from the steel operations to remain at . 
approximately the same level as a year earlier, while 
deliveries from the trading and further processing 
operations were expected to be somewhat lower. 

Mr Leif Gustafsson. chief executive, said 1996 was 
expected to be a tough year for the European steel 
industry, with steel consumption forecast to fell about 7 . 
per cent and downward price pressures remaining. In the. 
third quarter, be said price pressure an the company's 
steel products was limited to only 1 per cent compared 
with the second quarter, largely owing to an improved 
product mix. Prices in the nine-month period were about 
12 per cent lower than a year earlier. 

He said deliveries from SSAB’s steel operations were 
largely unchanged, while volumes in the trading . 
operations were around 5 per cent lower t han 1996. Sales 
in the nine-month period fell to SKrlSbn from SKrl4bn • 
with 8 percentage points of this attributable to lower 
prices and 2 points to lower volumes. 

AFX News, Stockholm 

KPN faces protest over TNT 

VKL the association of Dutch courier and express delivery 
companies, has lodged a complaint with the European 
Commission alleging that KPN, the partially privatised 
posts and telecoms group, is using profits from its postal 
monopoly to fund its planned FI 2.7bn ($L6bn) takeover of 
TNT. the Australian parcels company. Brussels is due to 
rule next week on whether the deal, cleared y ester day by 
the Australian authorities.' warrants' further scrutiny. - 
Mr Harts Koeleman, of Transport en Logistiek 
Nederland, an industry grouping of which the 300-member 
VKI is part, said yesterday: “The takeover wil l 
intermingle' its monopoly and non-monopoly activities -It 
will be too strong a competitor in the Dutch market. The 
association wants an end to KPNs sole right to deliver 
letters weighing less than 600 grammes - an idea to 
which KPN has said it is not opposed, as long as such 
deregulation happens EU-wide. PTT Post, itsnmfl arm 
which also includes private sector parcel activities. 

brought in net earnings last year of Fi 541m. ^ ' . 

Gordon Cramb. Amsterdam 

Spain urged to open telecoms 

Theboard of the Unisource telecommunications alliance 
yesterday appealed to the Spanish government to open .up 
ite telecommunications market as soon as ttmt 

it could receive European Union aPP^ 0 ^ Spanish 

telecommunications market is not 

ijnisource operation won't be approved, Mr Lars Berg, 
^airman of the European group, said. 

Commission has said it will only approve foe 

ihiance if Spain opens up its telecoms market by January 

■ S™ iS£3E«£ * the Netheriands, Telia 

^SSSSS^SL Telecom Teleffiniaa. tte ^ 
etoup. has 25 per cent of the allian ce. Once rt is 

panish: company s s -The non-integration 

ent on the share price of Telefonica. Reuteri Madrid 
consents cmd pres, 

companies coverage C ^J*J****J V email to 







Coming soon to the Swiss Exchange: SEZ 

An 

investment in 

outstanding 

growth 



Ope ra ting Income 
mcwrifloo 


In mid-November the roistered shares of SEZ Holding AG, Zurich, will be floated 
under the lead of Bank J.VfontobeJ & Co AG and listed on the Swiss Exchange. 


Sustained growth 

In a very shore time SEZ has developed Into a world-class supplier to the micro- 
chip industry. The company’s expansion is outpacing that of the international 
semiconductor Industry. SEZ*s earnings are growing fester than its sales. With its 
leading-edge Spin Etch Technology and its global presence, SEZ is aiming to cap- 
ture market leadership worldwide in wet etching. 


Profit growing forcer 
chan sales: earning* up 
20- fold in live years. 


1 986: founded by Egon Pucti and Franz Sumnhxch,tha current 
CEOs, to develop an innovative wet etching process for die semi- 
conductor industry. 

1 996: Operational headquarters inViUaeh (Austria), with 
subsidiaries in the UK and USA. a joint venture In japan and strategic 
affiances in Taiwan, Korea and Singapore. 

Sales: CHF 43.1 million; net Income: CHF 6.8 million; equity ratio 
after IPO: over 80%. 

1 997: Quantum leap in growth: sales up 60%. net income up 95%. 

To obcain full information, order the SEZ company portrait from: 
SEZ AG. Monika Kralcer, Draubodenweg 29. 9500 VlUach. Austria. 
Phone +43 4242 204, or 

Bank J.Vontobel & Co AG. Karin Orel. Bahnhofotrssse 3, 

8022 Zurich, Switzerland, Phone +41 I 283 71 60 





} 


HOBART COMMUNICATIONS 


FINANCIAL ADVERTISING 
AND MARKETING 

LITERATURE DESIGN 

♦ 

ACRYLICS/LUCITES/TOMBSTO N E S 


FOR FURTHER INFORMATION PLEASE CONTACT 
STEPHEN WITT. MARKETING DIRECTOR 


Postal iddnai: 

PO BOX 212 WEST MAILING KENT ME19 5SB ENGLAND 


E-mail addresa: 

iofo0hobarc.co.uk 


World wide web: 
hit p;//www. ho bart. eo.uk 


Facsimile: 
01732 842266 


Telephone: 

01732 841100 


ISDN: 

0 1732 872371 


COMMERCIAL PROPERTY 


LEGAL NOTICES 


IN THE SUPREME COURT OF BERMUDA CIVIL JURISDICTION 

1983: NO. 29 

3N THE MATTER OF THE COMPANIES (WINDING-UP) ACT 1977 AND 
. IN THE MATTER OF THE INSURANCE ACT 1981 A ND 
IN THE MATTER OF DOVER INSURANCE COMPANY UMHED-IN LIQUIDATION 

NOTICE TO CREDITORS OF INTENTION TO DECLARE DIVIDEND 


TO: AN person* who (a) ep p ua r from the records of the company to have contractual ra i a fin na h i p 
with the company AND (b) ham not Seda proof of debt In th* NquMation of the company 

TAKE nolle* that a s econd Int e r im dividend la intended to be declared In this matter. The dividend is 
Htety to be 20 


The Liquidator has previously notified you of the claims fling daadTne astobfehed as Marsh 31, 1991 and 
no claim was (Had by you.. Consequently, the Liquidator may p ro c e ed to dUrflxd* the dhddend only to 
those cradftors who have lodged preofe of debt wthin tha fling daadSna, uniasa (a) you lodge a proof of 
debt within 14 days at this nodes and (b) you show just causa why the proposed dividend should not be 
dactaad and paid i 


Dated this 1st day of Nove m b er , 1996 
NicoMto J. Rene. 

ferandonbahaVcf 

Chart** W. Kacnpa, Jr. 

Liquidator 


INTERNATIONAL TENDER FOR THE SALE OF 

HOTEL REGENCY 
MONASTIR - TUNISIA 

La Compagnie Touristique Arabe “C.TJL” is 
putting on sale the REGENCY HOTEL 5***** - 
400 beds - situated in Cap Marina Monlstir - 
. Tunisia. ., 

Interested parties may obtain the relevant files 
from the Head Office of C.TA. at 12, Rue de 
Hollande -1000 TUNIS -Tel: (216.1) 350.695- 
Fax: (216.1) 342.407 

a) The outer envelope should bear the mention 
“DO NOT OPEN” - International tender for the 
sale of Hotel REGENCY - Monistir, and should 
be addressed to: 

Mr. le President Directeur G6n6ral de la 
Compagnie Touristique Arabe 
12, rue de Hollande - 1000 TUNIS - TUNISIA 

b) The inner envelope should be sealed and 
should contain the documents relevant to the 
International tender mentioned in the 
specifications. 

The final date for the receipt for the tenders 
has been set for January the 20th 1997. 

(The seal for the C.T.A. Bureau d’Ordre or the 
Post Office seal is proof of date). 


Ajlicante/Spain 

10 km from town centre. 
30 km from Benidortn 
400.000 m* 
building-, industrial 
or agricultural land. 
Country house 600 m* 
(needs repair) 

Best climate in Spain! 
For sale 775 piasVm 1 

TeL ++49 72 43 - 30 650 
Fax 30 655 (Germany) 


FRANCE 

Wc apcrialuc in mi riming 
commercial property a Frame, sod 
ad ac behalf oT major hueroaboral 
banks, insurance companies, 
iuvcsxas and developers- Though 
our pro-acrive and atntegic 
marketing methods, we have 
achieved significant result* for our 
clients. 

If you arc having difficulties in 
letting or aeffing your c omm erc i al 
property in France you should speak 
touafhaL 



FJKL mvESmSSHMENTS 


72 . for to Fkztourg, 

Sj HononS 7SOOS Para. 

W; 1 1 > 40 07 U D7 . Fta: 1 1> 40 07 16 


Birmingham, Edgbaston 

Bhmm&iant City Cenhr Vi miles; A38fW) 2 mite, London 123 mite |Dfannret approx) 

An I m p r ess i ve grade II listed Victorian building with potential. 
Providing approximately 1,421.93m 2 f 15306 sq ft) (Gross 
Internal) accommodation currently with open B1 office use 
Ground floor tndwflng reception haQ, boardroom, orangery and ballroom. 
7 first floor rooms. 8 second floor rooms. Garaging outpoUdlngs and flat. 
Mature gardens with secondary access off Anoxuther Road. 

About 1.8 acres (0.73 ha) 


5 Union Stmt SoaifoitmpoiVAvon. Warwickshire CV37 6QT. Tel: 01789-297735 
1 S2S)oanc Street. London SWIX 9D8.Trfc 0171 -£Z4 B171 


Commercial Property 


CRAWFORD 
PLACE 
LONDON, W1 

AIR-CONDITIONED 
OFFICE 
BUILDING 
11,325 SQ.FT 

APPROX 

FOR SALE 
FREEHOLD 


Jama* Lewis & Company 
9171431 4565 
I — r l ltoi a . a»eeadBaStrea 

Loodoa W 1 P 1 FG 
taBflMtt«27 


Every Friday 


To re ach 52/100 property decision makers advertise hi the Bnanctei 
Timas' Commercial Property section every Friday. 


For farther I nfo r matio n 
Cont a ct 

Emma Mrfafy on 0171 873 4901 

Commercial Property forthcoming features 
scheduled for NOVEMBER 1996 Include: 

22 November Warehousing and distribution 


UK Commercisi Property 


LUXURY FULLY 
FURNISHED OFFICES 


ST JOHNS WOOD 

& SWISS COTTAGE 

Total support services. 24 hr access. 
Two months minimum from £100 pw. 


Tel: 0171 483 2281 


The Financial Times plans to publish a Survey on 

Investment & 
Finance in Turkey 

on Thursday, November 21 


For further Information on advertising please contact: 

Klrsty Saunders in London on 
Tel: 0171 873 4823 Fax: 0171 873 3204 
or 

Giro Constante In Istanbul on 

Tel: +90 212 279 26 48 
Fax: +90 222 264 17 61 


FT Surveys 


■ - om' 




-? - 












22 


FINANCIAL TUMES 


FRIDAY NOVEMBER l 1996 


COMPANIES AND FINANCE: THE AMERICAS 


Caracas sets CANTY reference price 


By Raymond Coiitt 
in Caracas 

The Venezuelan government 
yesterday announced the ref- 
erence price for the sale of 
its 49 per cent stake in 
CANTV, the telecommunica- 
tions company. 

The price range has been 
set at $3,071 to $3.50 per 
share, or $21.50 to S2-L50 per 
American Depositary 
Receipt. The sale, due on 
November 27, will raise up to 
Si . 01 bn and will be the coun- 
try's largest initial public 

offering. 


un & Bradstreet, 
today does the 
splits. The 155-year- 
old information conglomer- 
ate is dividing into three. 

Two publicly listed compa- 
nies - Cognizant and AC 
Nielsen - are being created 
through a tax-free special 
dividend and start trading 
today. The rump of Dun & 
Bradstreet - Moody’s and 
other credit services - con- 
tinues as a separate entity. 

The aim of the split, says 
Mr Bob Weissman, the 
youthful 56-year-old former 
chairman of D&B and new 
chief executive of Cognizant, 
is to enhance shareholder 
value by allowing the com- 
panies to preserve good 
strategies and make better 
decisions. 

Managing the old D&B 
became increasingly difficult 
because it was so diverse, he 
explains. The company 
included mature but highly 
lucrative businesses such as 
Yellow Pages and Moody’s, 
the ratings service; AC Niel- 
sen. the barely profitable 
information group supplying 
data for the fast-moving con- 
sumer goods industry; and 
rapidly -growing operations 
such as IMS, the healthcare 
information group. Nielsen 
Media Research, the televi- 
sion audience measurement 
service, and Gartner, the 
quoted information technol- 
ogy consultancy. 

“Look, the businesses had 
very different positions and 
needs,” says Mr Weissman. 
"Frankly, there were a lot of 
tensions. Take AC Nielsen 
and IMS - they shouldn’t 
have been on the same 
planet, let alone in the same 
organisation." 

Mr Weissman explains 
that AC Nielsen was in a 
highly competitive environ- 
ment. The right strategic 
move was to invest heavily 
in new services. But D&B’s 
dividend was absorbing 70 
per cent of free cash flow. 


A total of 289.4m shares 
will be offered, of which 50m 
are to be placed on the Ven- 
ezuelan market. In addition 
to the 40 per cent share 
package being sold globally. 
CANTV employees are being 
offered a 9 per cent stake. 

The government insists 
that the CANTV offering 
does not conflict with the 
placing of other shares. “We 
see a window of opportunity 

that favours the placement, 
as there are no similar offer- 
ings by developing coun- 
tries," said Mr Alberto 
Poletto. head of Venezuela's 


making that investment dif- 
ficult to fund. 

In contrast, IMS wanted to 
expand through acquisitions. 
But the shortage of cash 
held back its ambitions, and 
the high dividend made 
using stock issues expensive. 
An effective acquisition pol- 
icy was impossible. 

The split has meant a cut 
in dividend, concedes Mr 
Weissman. Cognizant, which 
includes IMS, Gartner and 
Nielsen Media Research, will 
have a pay-out ratio of 8 per 
cent; AC Nielsen will not 
have a dividend; and the 
D&B rump - essentially 
Moody's - will have a pay- 
out ratio of 48 per cent Mer- 
rill Lynch, the US broker, 
estimates the combined 
quarterly dividends of the 
three groups will be only 25 
cents, against 66 cents 
before. 

“The decision was made 
easier because the rationale 
for the old company had 
come to an end.” says Mr 
Weissman. “Say, 15 years 
ago. there were economies of 
scope and scale because 
most of the divisions were In 
the business of processing 
large volumes of data. That 
meant they needed huge 
investments in information 
and communications tech- 
nology. 

"But the cost of computing 
has fallen so much that the 
paradigm for competition is 
no longer scope and scale, 
but speed. Size is no longer 
an advantage - in fact it can 
be a liability.” 

Mr Weissman has chosen 
to manage fast-growing Cog- 
nizant. IMS. Gartner and 
Nielsen Media Research are 
diverse businesses, but he 
insists this is no problem. 

“It's misleading to think in 
terms of the end-market The 
important synergies are in 
value-added costs. All three 
need significant technologi- 
cal expertise, database man- 
agement and communica- 


privatisation agency, Fando 
de Inversiones de Venezuela. 

Industry analysts say that 
growth prospects for the 
telecommunications indus- 
try In Venezuela are favour- 
able. with a rapid economic 
recovery expected. However, 
they say that CANTY'S sale 
price could be affected by 
the fact that its monopoly 
ends in the year 2000 . 

According to Mr Poletto. 
this is the “first time that 
international investors are 
analysing stocks placed by 
the Venezuelan govern- 
ment.” He added that “this 


(ions technology. There are a 
lot of shared competencies." 

Mr Weissman and his 
team, which will be remu- 
nerated mainly by the 
group's share performance, 
are ambitious for Cognizant 
which has achieved a com- 
pound annual operating 
profit growth rate of 15 per 
cent for the past five years. 

Not least it wants to grow 
through acquisition. “The 
investment bankers are tell- 
ing us we could fund Slbn of 
acquisitions without diffi- 
culty - and that's just cash. 
We could use stock as well" 

In the mid-term most 
acquisitions will be in 
healthcare, says Mr Weiss- 
man. The aim is to expand 
IMS, which will account for 
about 60 per cent of Cogni- 
zant's sales, geographically. 

IMS will also expand its 
customer base. Historically, 


privatisation is a measure of 
the country's credibility”. 

The Venworld Telecommu- 
nications consortium - made 
up of GTE, AT&T. Telefdnica 
de Espana. Venezuela's 
Banco Mercantil and 
Electricldad de Caracas - 
currently holds a 40 per cent 
shar e in CANTV. 

A road show by CANTV 
and Fiv officials, scheduled 
to be launched today In 
Venezuela and Monday in 
Europe, precedes the open- 
ing of a three-week book- 
building process to conclude 
on November 21 with the pri- 


the group has supplied data 
mainly to marketing and 
sales sections of pharmaceu- 
tical companies, says Mr 
Rene Derecque. president of 
IMS International. He aims 
to target research and devel- 
opment departments and 
regulatory affairs sections. 

"Everyone is looking to 
control healthcare costs," 
says Mr Weissman. “The 
lubricant of efficiency Is 
information and there is an 
explosion in demand for 
such data. Nobody domi- 
nates that, but we're in a 
good position to do so.” 

M r Weissman dis- 
misses suggestions 
that health main- 
tenance organisations, 
which increasingly control 
healthcare budgets, threaten 
to squeeze its US business. 
As for the other busi- 


cing and placing of the 
shares on November 27. The 
two global lead managers of 
the offering are investment 
banks Lehman Brothers and 
SBC Warburg. 

The CANTV IPO marks 
the revival of Venezuela’s 
stalled privatisation process, 
which lacked political sup- 
port and had run into 
bureaucratic problems dur- 
ing the first two years of the 
current administration. Mr 
Poletto said that the govern- 
ment now expected to raise 
some $4-5bn over the next 
five to six months. 


nesses. Nielsen Media 
Research has huge opportu- 
nities in monitoring the 
Internet. And he intends 
Gartner to achieve Slbn 
sales by the end of the 
decade. “That’s explosive. In 
1990, it had revenues of just 
S60m," he says. 

So far, the markets seem 
dubious about the plan, not 
least because of the dividend 
cut. Despite well-received 
road-shows, the shares have 
fallen from $63.13 since Jan- 
uary 8, before the break-up 
was announced, to $57%. 

Over the same period the 
shares bave underperformed 
the S&P composite index by 
20 per cent. Mr Weissman’s 
strategy may prove sound, 
but he has his work cut out 
to convince the markets of 
its validity. 

Paul Abrahams 


CVRD 
net profits 
advance 
by 34% 

CVRD, the Br azilian mining 
group preparing for privati- 
sation in one of the biggest 
offerings In Latin America, 
announced a 34 per cent rise 
in net profit in the nine 
months to September 30, to 
RS280m (US$27 2m) com- 
pared with B$209m In the 
same period in 1995, agen- 
cies report from Rio de 
Janeiro. Earnings per share 
were RS0.72 against RS0.54 
in the comparable period. 

The results were broadly 
in line with analysts’ expec- 
tations. 

Nine-month net revenue 
was up 1.5 per cent com- 
pared with the same period 
in 1995, which the company 
attributed to a continued 
recovery in steel prices. 
CVRD said the revenue 
increase came in spite of a 
3.6 per cent drop in the vol- 
ume of iron ore sold to for- 
eign markets, which account 
for 70 per cent of the compa- 
ny's sales. 

The lower iron ore sales to 
foreign markets were tied to 
lower European demand, 
according to Mr Anastacio 
Fernandes, company direc- 
tor. Total iron ore sales 
dropped about 3 per cent. 

Gross revenue from gold 
was up 0.8 per cent to 
R$153-2m. 

Revenues from CVRD’s 
railway and port services 
were stable at about 
R$437m. Railway revenues 
declined 1.9 per cent, while 
port revenues increased 6.3 
per cent. 

CVRD said its tax bill 
dropped 16.4 per cent to 
R$103m, largely due to the 
suspension of the val- 
ue-added tax (I CMS) charged 
on its North System iron ore 
exports and South System 
pellets exports. The I CMS 
exemption saved the com- 
pany R$24m. 

The cost of products and 
services bought by the com- 
pany declined 7 per cent, 
partly reflecting productiv- 
ity gains derived from staff 
reductions. 

CVRD's privatisation is 
expected to raise about 
US$6bn. The government 
hopes to auction 40 to 45 per 
cent of the company's voting 
shares in February 19J97 
before selling further shares 
to investors via a global 
offering. 

This will be followed by 
an offer to employees of 10 
per cent of the company's 
total capital (including 5.1 
per cent of ordinary shares). 
A further 17 to 20 per cent 
of ordinary shares will be 
sold on Brazilian and over- 
seas capital markets, proba- 
bly by June 1997. 


Dun & Bradstreet opts for divorce 

Break-up is seen as the best way to cater for the diverse needs of the business 

Cognizant declares independence 


Revenue ($m) 
BOO 




Brewers try to solve dispute 


Monsanto reaps benefit 
of genetic engineering 

US group prepares for new ‘green revolution 5 


By Robert Gibbens 
in Montreal 

Molson Breweries, the 
Canadian brewer, will con- 
tinue producing Coors beer 


agreement with Molson 
Breweries, which allowed 
Molson Breweries to produce 
Coors brands in Canada. 

Molson Breweries is 
owned 40 per cent bv Molson 


ticipate in any decisions 
relating to Coors. 

On October 18, a Canadian 
arbitration panel ruled that 
Molson Breweries did break 
the licencine agreement It 


W hen US soyabean 
farmers complete 
their near-record 
harvest this autumn, they 
will be reaping the benefits 
of change at Monsanto, the 
St Louis-based chemical and 
pharmaceutical company. 

With this year's harvest, 
Monsanto will realise the 
first commercial fruits of a 
$lbn, 15-year research effort 
to enhance common plants 
through genetic engineering. 
Its transgenic soyabean, 
which was altered by insert- 
ing DNA from a common 
soil micro-organism into its 
genetic structure, resists 
Monsanto's own brand-name 
herbicide, and was available 
to fanners on a limited basis 
this year. 

Although official results 
are not yet in. first reports 
are that the transgenic seed 
yielded 20 per cent more 
than its conventional neigh- 
bours and required fewer 
applications of chemicals - 
more than compensating 
growers for its premium 
price. 

The “rewired” seed is 
expected to give new legs to 
Round-Up, the 25-year-old 
herbicide that accounts for 
more than half of Monsan- 
to’s total operating income. 
The “Round-Up Ready” soya- 
bean Is also one of Monsan- 
to’s earliest entries in the 
race to control and commer- 
cialise the science that some 
believe will form the basis of 
a new “green revolution”. 

Monsanto executives pre- 
dict that genetically-altered 
seed will become a $6bn 
annual market within five 
years, as the world seeks 
ways to meet rising food 
demand while dealing with 
environmental concerns and 
the gradual exit of govern- 
ments from agriculture. 

Mr Robert Sbapiro, Mon- 
santo chairman, is prepared 
to bet the farm on the new 


technology. Last month he 
announced Monsanto's plans 
to spin-off or sell its profit- 
able specialty chemicals 
business. The divestiture, 
due to take place within the 
next few months, will leave 
Monsanto in three busi- 
nesses, with agricultural 
products by Ear the largest. 
The others are food ingredi- 
ents (where the lead product 
is the Nutrasweet sweetener) 
and Seaxle, the Chicago- 
based drug company. 

Analysts say selling or 
spinning off the chemical 
unit will not bring new cash 
to the company, but will 
leave Monsanto with less 
debt, and with a high-growth 
business that requires very 
little capital investment. Mr 
James Wilbur, analyst with 
Smith Barney in New York, 
said over the longer term, it 
would not be surprising if 
Monsanto considered divest- 
ing either Its drug or food 
ingredients units as well. 

Chemicals accounted for 
40 per cent of Monsanto's 
$7bn revenues in the first 
nine months of this year, but 
generated Just 20 per cent of 
its $lJ2bn operating income 
in the same period. Agricul- 
tural products, in contrast, 
generated $73 lm in operat- 
ing income from January to 
September, a 25 per cent rise 
from a year earlier. 

Shareholders are enthusi- 
astically buying into Mon- 
santo's new “life sciences" 
image, although profits from 
the bio-tech business have 
barely begun to trickle in. 

Monsanto's share price has 
behaved more like an Inter- 
net start-up than a chemical 
company, rising from $18 
two years ago to more than 
$41 this month (adjusted for 
a five-for-one stock split). 

As in any high-tech indus- 
try, Monsanto’s success in 
plant engineering depends 
on Its ability to control pro- 


prietary technology all the 
way down the product 
stream and to get it into the 
fields at a premium price. 

Gaining regulatory and 
consumer approval for the 
products outside the US - 
where there is the largest 
potential for transgenic seed 
- is central to their success. 
The company is learning 
this year that these approv- 
als can be time-consuming 
and costly to obtain. 

At home. Monsanto has 
invested nearly $750m in the 
past 12 months to purchase 
or partner seed companies 
that will distribute the new 
genetic “software” to farm- 
ers. It now owns the world's 
second-largest soyabean seed 
company. As grow; has a 
majority Interest in Calgene, 
the California company that 
has leading transgenic 
patents for tomatoes and for 
higher-oil content oilseeds; 
and has a substantial Inter- 
est in DeKalb. the second- 
largest maize seed company 
in the world. 

While analysts agree Mon- 
santo has the dominant posi- 
tion in the plant gene-trans- 
fer business, it is just one in 
a gathering of global giants. 
Its competitors include 
Novartis, (the result of the 
merger between Ciba-Geigy 
and Sandoz); AgrEvo, a con- 
sortium formed by Hoechst.' 
Roussel Uclaf and Schering. 
and Dow Elanco, a Joint ven- 
ture between Dow Chemical 
and Eli Lilly. 

Mr Sana Shimoda. analyst 
with BioSciences Securities 

says: "What we will soon 
have is an agricultural- 
industrial complex based on 
strategic relationships 
between these firms.” which 
will cover seed and chemi- 
cals distribution and even 
processing of transgenic 
crops. 

Laurie Morse 


in Canada until June 30 1997. 
while the two companies try 
to solve a long-term licenc- 
ing dispute. 

The dispute centres on the 
1993 acquisition of 20 per 
cent of Molson Breweries by 
Miller or the US. a competi- 
tor of Coors. Coors com- 
plained it was not consulted, 
and Miller's purchase broke 
the terms of Coors' licencing 






Companies, a holding com- 
pany, and 40 per cent by Fos- 
ter's of Australia. 

Coors feared that its suc- 
cess in Canada would be 
restricted by Miller's place 
on Molson Breweries' board, 
which would give Miller 
access to Cooes' marketing 
strategy. Molson Breweries 
denied Miller exercised con- 
trol. and said it did not par- 


ended the agreement as of 
April 1993. requiring Molson 
Breweries to face paying 
Coors its share of profits 
over 3* * years. 

Molson said its earnings 
would be reduced by C$15m 
tUSSlltn) for the October 
1996 to June 1997 period. 

Both companies will con- 
tinue talks to set up longer 
term arrangements. 


Thi% -uh emr-emc-ru fa isvucd in «xniipluince with the requirement.-, of I he L.-ndon Meek Exchange Limited nhe 
"L -xuk-n Sl.x-k Exclunjsc' It doe* nw conMiiuie in offer or form pan of Jnv offer or invitation 10 seU <x issue, or 
mv solicivman of" an offer lo purchase or nub'erlfae for. im oniirurv bh.nrrr in The Brtn AJlctc-ft Company pic 
i "The IVIll vilcroft Coropuny"\ 

Im been made to the London Stcvk Exchange for the whole of the ordinary share capital of The BntJ 
dlcmfi Ci-mpanv. issued and to he Lv-ued. to tv admitted to the Official List of the London Stack Exchange. It is 
expected lhai .idnU-mon io the Official Lot will Ixvontc effective and' that dolmas in the ordinary dures will 
commence on t> November T^od. 




The Britt Allcroft Company pic 

I lmt»ponled and rc^i’tcnrd nt England and miles under the Companies .\et Regfaleted No 21201.2-1 l 

Placing 

Sponsored by Price Waterhouse Corporate Finance 

and 

Underwritten by Charterhouse Tilney Securities limite d 

of 

8,525,693 ordinary shares of 10 pence each at 130 pence 
per ordinary share 


Authorised 

Number Amount 

J4.000.IKM £}.-WU.LW 


Share capital foOowtaji die p hring 


ordinary shuts, of in pvrKtr each 


IsMied and full)' paid 
Number Amount 

i}, 505.10-5 ^.350.510 


The principal activities of The Brio AlUrroft Company arc the creation or acquisition, production and licensing of 
entertainment charterers for a worldwide family audience. 

A document rotating IO The Brut A iicroft Company, comprising; a pn>Kpecta-i and listing particular! as barest has 
been published and will be available, for coNcfJon dunns normal bipinw* hours, tor mo business days From the 
dale hereof from the Company Announcements Office. London 5u.vk Exchange. London Stock Exchange Tow er. 
Old Bread Mreet entrance. London EC2N 1HR and during normal business hours on anv weekday - Saturday. 
Sundays and public holidays cftcvpicd) from die due hereof up to and including 15 November from.- 

The Bnn Aileron Company pic Charterhouse Tilney Securities S.F Uerwin X Co 

4 OnNnVy Square Limned 222 tTrays Inn Rood 

Soui lump !, hi SOS'S 2 [IE 1 Paiemo»er Row London WC1X SHB 

St. Paul 1 * 

Lomkn EC-LV "DH 

I November 1996 


AMERICAS NEWS DIGEST 


Data General 
ahead of forecasts 

computer manufacturer, which has been struggling for 
several years, attributed its results to a successful 
transition to new products. 

Net income for the fourth quarter, ended September -S, 
was $9 .9m. or 24 cents a share. Wall Street analysts had 
been expecting earnings of about 19 cents a share- In the 
same period last year, the company reported net income 
of $1.5m, or 4 cents. Revenues for the quarter were 
5336.2m. up 7 per cent from $312. 8m in the same period 

last year. 

Data General's new computer systems, based ou Intel 
microprocessor chips, now represent more than 40per 
cent of server sales, the company said. Revenues from 
storage systems also grew during the quarter. 

For the year. Data General reported net income of 
* 28 . Im, or 68 cents a share, against a net loss of $46.7m . 
or $1.23, in fiscal 1995. The 1995 results included a 
restructuring charge of $43m as well as a pre-tax gain of 
$44,5m from the settlement of litigation. Revenues for 
fi ffrqii 1996 grew 14 per cent to $1.32bn. up from $1.6bn m 
fiscal 1995. 

The year-results represent “a dramatic turnround for 
Data General" said Mr Ronald Skates, president and chief 
executive. Data General's shares were trading at $14*. in 
mid-session yesterday, unchanged from Wednesday's 
dose. Louise Kehoe. Son Francisco 

Horsham and Trizec to merge 

Horsham and Trizec, two companies controlled by 
Canadian financier Mr Peter Munk. received shareholder 
approval yesterday to merge into Trizec Haan. North 
America's second-biggest quoted property group with 
US$6bn assets. 

mi- M onk took control of Trizec, formerly owned by the 
Bronfman family of Toronto, in a big financial 
restructuring in July 1994 as the North American 
property slump ended. He also controls Bamck, the big 
international gold producer, partly through Horsham. 

The new Trizec Haan will be an international property 
group with a portfolio worth more than US$3.5bn 
including 50m square feet or commercial and office space 
in North America- principally the US, and a strong 
European base. 

Trizec Haan stock will be traded on the New York. 
Toronto and Montreal stock exchanges. Horsham posted 
third quarter earnings of US$53m, or 49 cents a share, 
against US$14.im. or 14 cents, a year earlier. Including 
special items, the latest quarter showed a loss of US$3 -2m. 
Trizec. hitherto 48 per cent held by Horsham, posted 
third-quarter earnings of US$LL3m, or 11 cents, against 
US$11. 3m. or 10 cents, on revenues of US$148m against 
US$135 m. Robert Gibbens . Montreal 

Dofasco may raise dividend 

Dofasco. Canada's biggest steelmaker, is considering 
raising Its dividend or buying back shares following a 
strong profit performance this year. "" 

The comapny, which specialises in flat rolled products 
for the car industry, earned C$50. 1 m (US$37m). or 58 cents 
a share, in the third quarter, up 10 per cent from C$45. 3m. 
or 52 cents, a year earlier. Nine-months profit was 
C$1 27.8m, or C$1.49, against C$12A2m. or C$1.45. a year 
earlier. Revenues were C$2.2bn against C$2 bn. 

Robert Gibbens 

Western Star hit by downturn 

The cyclical downturn in North American heavy truck 
demand hit Western Star, the Canadian-based producer 
which owns ERF of the UK. in the first quarter of fiscal 
1997. Net profit for the three months ended September 30 
was C$7. lm (US$5 -2m). or 56 cents a share, down from 
C$12-3m. or C$1.10, a year earlier, on revenues of C$281m 
against C$175m. 

The quarter included extra cost for developing its new 
line of heavy trucks made in British Columbia. Lower 
demand had led to aggressive pricing and lower margins 
throughout the industry, said Mr Drew Fitch, executive 
vice-president Robert Gibbens 

Mitel advances to C$16.5m 

Mitel, the Canadian telecommunications equipment 
group, exceeded market forecasts with net profit of 
C$16.5m (US$12. 3m) or 15 cents a share in the second 
quarter ended September 27. up from C$15m or 13 cents a 
share a year earlier. Revenues were C$169m against 
C$149m_ 

Mitel, a PBX and semiconductor producer, has set 
record sales over the past two quarters partly due to 
buying a Swedish semiconductor plant last March. It is 
now moving aggressively into computer-telephone 
integration products. Robert Gibbens 


BENETTON 
GROUP S.pA 

a company with ragratared office In Ponzano Venelo (TV), Italy 
Via Villa Minett. 1: a stock capital of Ut 87276.862500- registered at 
No. 4424 of the Treviso Company Register. 

Half-Year Report 
January-June 1 996 

Notice is hereby given that Benetton Group S.pA Is 
Half-Year Report on the Company and Group 
performance as of June 30, 1996 may be obtained 
on request from: 

-the Company or 

the Stock Exchange Council in Milan. 


SUMO LAND COMPANY LIMITED 

fa company incorporated in Hong Kong with limited liability) 
US$200,000,000 5% Convertible Bonds due 2000 
(The “Bonds”) 

NOTICE TO BONDHOLDERS 
s,no Lend Company Limfrad (“the Company'! on 
1 October, 1996 proposed a final dividend of HKS0.12 per share (with 
an option for scrip dividend) for the year ended 30 June. 1996 to 

“» register o{ members on 22 
November. 1996. This final dividend rs payable on 20 December. 1996. 

* S approval of shareholders of the 

^p^ at lhe /Uini'al General Meeting to be held on 22 November, 
cSmb^, warranus wi " despatched on or about 20 

7 te £)k? 1 ' 9 of * h ® Company wilt be closed from 18 
November. 1996 to 22 November, 19% (both dates Inclusive). 

°T rt !u 0 . B 2 rKfe » exercise their con- 

mHh •S BC Sf? their Bond s so as to be entitled to the said 
S2? P '°P* H V completed and signed can- 

W,t £ ‘i 18 6006 certificates with their Agent so 

NtaXr S Pany bef ° re 4 00 P- m IHon fl Kfcnfl «"Wl 0" 22 

By Order of the Board 
Eric Ip Sai Kwong 
Secretary 

Hong Kong 


1 November, 1996 
BttQribartLNA ICciporara Aflancy & Trust). Aawr Bank CITlBANOGl 





\ 

\ 


S* 


/IX in 


iiv i!i\iiiviiil 


il In liiH'SE 




FTNANCIAL. TT vrrg 


FRIDAY NOVEMBER 1 1996 


COMPANIES AND FINANCE: UK 


Shell disappoints in third quarter 


®y J*ne Martinson 

A« y ? butch/Shell, the 
Anglo-Dutch oil group, 

tillrd Quarter earn- 
ings below market expecta- 
lIO ° s yesterday, after 
restructuring charges and 
exploration write-offs. 

Net profits fell to £L12bn 
(SLfi2bzO, against fiuaobn, in 
the three months to Septem- 
ber 30, on a replacement cost 
basis and excluding excep- 
tional Items. This was 
despite oil prices reaching 


them highest level since the 
Gulf war. 

The shares fell I5p to 
£10.05Vip after a strong run 
in recent months. 

Mr John Toalster, sector 
analyst at Sociftt§ G&n&rale 
Strauss Turnbull, said: 
"These figures are somewhat 
disappointing given the 
strength of oil prices in the 
quarter." 

Analysts had expected 
continuing difficulties in 
Shell's chemicals trading 
arm and squeezed marine 


in its refineries businesses. 
However, there was some 
surprise ova: the cost of up 
to $50m (£Slm) for restruct- 
uring in Malaysia, where 
there bad been 600 redun- 
dancies. Shell also wrote off 
exploration costs of £222m, 
some 54 per cent higfrw than 
last time. 

Analysts' forecasts for 1096 
profits range from £5-2bn to 
£5JJbxL 

Exploration and produc- 
tion earnings provided the 
biggest fillip in the quarter. 


with a 74 per cent rise to 
£599 kei. This was mainly due 
to higher oil prices, hut was 
helped by increased oil pro- 
duction, gas sales outside 
the US and lower costs. In 
the US, exploration and pro- 
duction earnings more than 
doubled to £i55m- 
Oil prices averaged $2090 
a barrel in the period, up 23 
per cent on the year. Shell 
expected them to continue to 
be volatile, although they 
had been “robust" in the 
fourth quarter. 


Cash flow of £l-98bn from 
operating activities was 
£500m lower than last time. 
However, Mr Henry Strict, 
head of Investor relations, 
said this was due to a 
change in the accounting 
treatment of short-term debt. 

The group had net cash at 
the period end. a position 
which Mr S trick said was 
“not part of the declared pol- 
icy" of the group. One ana- 
lyst said this indicated scope 
for a big dividend increase. 

See Lex 


Grack in glass 
prices knocks 
Pilkington 


By Ross Tieman 

A Europe- wide slump in 
prices for building glass 
knocked first-half pre-tax 
profits at Piltebogton down 28 
per cent to £75m ($i22^tm). 

The slide came despite a 
strong performance in the 
US, especially on the auto- 
motive side, and notwith- 
standing some £85m of bene- 
fits from an aggressive 
cost-cutting drive launched 
last year. 

Reinforced by an 
unchanged dividend of l.TCp. 
the shares closed at 17ip, up 
lVip. 

Sir Nigel Rudd, the chair- 
man, said: “We would expect 
to see an impoving trend in 
the second half of the year.” 


Like its chief rivals world- 
wide, Guardian of the US 
and St Go bain of France, 
Pilkington has been battling 
against a combination of fall- 
ing prices and insufficient 
capacity utilisation in 
Europe since the beginning 
of 1995- 

Prices of commodity build- 
ing glass in this market, 
have fallen 25 per cent. 

- Price weakness in Europe 
is being compounded by the 
loss of traditional export 
markets in the Middle East 
and Asia as capacity there 
comes on stream. 

As a result, operating prof- 
its from its European build- 
ing products businesses fell 
40 per cent to £42m in the six 
months to September 30. 





FarpusViHUi 

Nigel Rudd, right, with Roger Leverton - expecting an improving trend in the second half 


Mr Roger Leverton, chief 
executive, said that since 
June, Pilkington had been 
able to increase its selling 
prices from DM4J5 to DM&5 
per sq m. But capacity utilis- 
ation In its European plants 
is running below 90 per cent. 

The company is seeking to 


accelerate the resfructuring 
of the business, Mr Leverton 
said. It also plans to export 
50,000 tonnes of glass, about 
a third of the annual produc- 
tion of one of its float plants, 
from Europe to the US dur- 
ing the second half to help 
meet strong demand there. 


■ The US business achieved 
operating profit of £36m 
(£28m) during the first half 
on sales of £393m. The fig- 
ures include a strong perfor- 
mance by the US automotive 
business, which is benefiting 
from earlier cost-cutting 
measures. 


T&N steps up asbestos cover search 


By Tim Burt 

T&N. the engineering group 
and former asbestos pro- 
ducer, has stepped up the 
search for possible insurance 
cover against its asbestos 
liabilities. 

The company, which as 
Turner & Newall was one of 
the UK's largest asbestos 
companies, has appointed 
specialist brokers to explore 
ways of capping its exposure 
to compensation claims - 


mainly fropa the US. 

. The move coincides with a 
preliminary hearing in the 
US Supreme Court today on 
the “Georgine Settlement", a 
class action, setting fixed 
payments for sufferers of 
asbestos-related Rj enastm 
T&N has warned it would 
have to donble this year’s 
asbestos provision to about 
£10Gm If the Supreme Court 
upheld an earlier ruling that 
the settlement did not con- 
stitute a class action. 


If the court decided to 
review the case, the fixed 
payment system would 
remain in place until formal 
hearings begin next year. 

But if the case is thrown 
out. T&N would face a big 
rise in personal injury 
Harms in the US. A decision 
is expected early next week. 

Zn the meantime, T&N has 
formally asked brokers - 
thought by some analysts to 
be Sedgwick — to draw up 
insurance proposals to 


reduce fu ture asbestos costs. 

Sir Colin Hope, chairman, 
has told institutional inves- 
tors T&N would not take up 
cover imlafig the premiums 
were relatively modest. Even 
if it decides against taking 
such cover, it has vowed to 
inform shareholders before 
the year-end about its plans 
to resolve the uncertainty 
surrounding asbestos. 

In the past 10 years, T&N 
has paid out more than 
£35 0m ($570. 5m) to settle 


claims. Fears of further pay- 
outs have undermined the 
shares this year, which have 
fallen from a peak of 187p 
and closed yesterday at l28p, 
up %p. Sir Colin, 63, has 
made it clear he is deter- 
mined to put the issue 
behind T&N before standing 
down as executive chairman. 

T&N has also told inves- 
tors that it was pressing 
ahead with its stalled take- 
over of Kolbenschmidt, the 
German pistons maker. 


Product 
shake-up 
at Body 
Shop 

By Peggy Hoffinyor 


Body Shop, the environ- 
mentally! ed cosmetics man- 
ufacturer and retailer, is to 
shake up its range of prod- 
ucts in a bid to attract 

higher spending customers 
into its shops. 

Mr Gordon Roddick, chair- 
man, said the group planned 
to cut its range of green 
label products by abont a 
fifth, eliminating the 
cheaper non-contributing 
lines. “The stores are over- 
stocked like an overnight 
case that is overflowing." he 
said. 

The revamp, which would 
also include new stare for- 
mats, was part of Body 
Shop's strategy to chase the 
“higher average transaction 
customer", Mr Roddick said. 

Meanwhile, the group was 
close to concluding its eight- 
month search for a non-ex- 
ecutive director to 
strengthen the board. Mr 
Roddick said Body Shop was 
keen to get someone with 
relevant experience. “If all 
we wanted was a non-execu- 
tive director we could have 
gone out and chosen a large 
orang-utan and put him on 
the board," he said. 

He was speaking at the | 
group's interim results 
meeting, where the group 
announced a higher-than-ex- 1 
pected IX per cent jump in 
pre-tax profits to £11. 8m 
($19. 2m) in spite of 
increased losses in the US. 

Turnover for the 28 weeks 
to August 31 rose by ll per 
cent to £117.1m. Retail sales 
- which represent an sales 
through Body Shop's M36 
outlets worldwide, both 
owned and franchised - rose 
by 13 per cent to £275.5m. 

Losses in the US rose by 
$lxn to 83.4m. Mr Roddick 
said the recent appointment 
of Mr Steen Ranter, a 
retailer with experience of 
the US market, to head the 
division was expected to 
“bring significant benefits 
to our US retail business". 

The shares rose 4%p to 

200p. 

See Lex 


LEX COMMENT 

Stakis 


Having been out-bid for 
both Copthome Hotels and 55t **°* 

Marriott hotels In the UK, sham price mfattwr to 
It was almost inevitable ttw FTS6 Att-Shme index 

that Stakis would offer a 120 -— — — — 7 ■■ v, ~ 

full price for Metxopole. So 

Lonrho has done well to 10Q fr • ■ — 

pursue a trade sale rather ■ . '1 

than a flotation. Nonethe* n A 

less. Stakis has not been 80 ’ I .. rwQ’l 

goaded by previous fail- || ' I '. ' - 

ores into an unjustifiable so — — ~~Ju — 1 

deal - a common pitfall. - (n W w ' 

Stakis has to add about 

£3m to profits to make the - • . W . 
deal earnings enhancing in 1 . 1 j ■ » » » 

the first year, and most of uw m a n m a esf 
that should come from wnumKirr-iri-T 
removing head office costs 

and streamlining management. Metropole focused on its 
highly successful conference business, achieving low 
occupancy levels but high room rates. So Stakis should 
boost revenues by bringing in a broader spectrum of 
customers. The group has committed itself to achieving a 
13 per cent post tax return on capital, and It has delivered j 
in the past. Furthermore, the hotels are already in good 1 
shape, so Stakis win use its remaining financial muscle to : 
invest in higher-return casinos and health clubs. 

The deal may not excite short-term profits, but it 
Increases the group’s clout in a hotel market where 
demand is out-stripping supply. On a ratio of enterprise 
value to cash flow, Stakis has sunk to the bottom of the 
range in a UK hotel sector that has got Indigestion from a 
surfeit of flotations. But it is too early for Investors to 
worry about the next downturn in demand. And even for 
those of a nervous disposition. Stakis’ management has 
earned a better rating against its peers. 


Stakis confirms 
Metropole deal 


By Christopher Price 

Stakis yesterday confirmed 
the acquisition of Metropole 
Hote ls from Lonrho for 
£327m ($533m) increasing the 
number of rooms in its port- 
folio by 50 per cent. 

The hotel group will fund 
the deal through a 4-for-7 
rights issue at 82p a share to 
raise £22Zm, with the 
remainder coming from 
increased borrowings. The 
news, widely anticipated by 
the market, left the shares 
lp higher at 99V4p. 

The five four-star hotels in 
the Metropole chain - in 
London, Brighton, Birming- 
ham and Blackpool - will 
add 2^66 rooms to Stakis’s 
portfolio of 5,500. 


Metropole made operating 
profits of £23. 7m last year on 
turnover of £75. 7m. Average 
room occupancy was 68 per 
cent and the average room 
rate was £65. Stakis has a 78 
per cent occupancy rate. 

Group gearing will rise 
from about 38 to 48 per cent 
on completion of the deal 
Lonrho said the proceeds 
would cut debt The disposal 
would involve a £58m sur- 
plus over book value, and a 
£l45m goodwill write-off. 

The group said discussions 
over the sale of the Princess 
international hotel chain 
were continuing. Analysts 
expect a deal to be 
announced shortly with 
Prince A1 Walid, the Saudi 
Arabian businessman. 


Discovery stance upsets Premier 


Time securities hm not bam registered under the Securities Act of 1933 and mag not be offend or sold bi the United States 
or to l/S. persons except in accordance with the male restrictions applicable thereto. 

NEW ISSUE These seaadja hoping been pntoimn lg solti thn announcement a pp ea r s as a matter of recent ordst. OCTOBER, 1996 


. By Nikki Tatt in Sydney and 
Jane Martinson in London 

Premier Oil, the UK-based 
ofl Independent said yester- 
day that it was “disap- 
pointed” with the reaction of 
Discovery Petroleum, the 
Australian oil and gas group, 
to Its increased A$106.5m 
($86.4m) offer. . 

Discovery directors said 
the revised offer, 14 per cent 
higher than the original, still 
undervalued the company. 

However, Mr Charles 
Jamieson, Premier's chief 


RESULTS 


executive, said the 10 cents 
increase to 80 cents a share 
was a “very fair offer”, and 
Premier would now “wait 
and see”. 

The revised bid falls 
within the 77-95 cents a 
share valuation range deter- 
mined by Grant Samuel, 
which was called in to pro- 
vide a fresh valuation of Dis- 
covery’s assets. 

Discovery directors 
pointed out that the revised 
bid was “significantly? 
below the mid-point of that 
range, but added that they 


were still reviewing the new 
terms. Discovery also 
revealed that Oil Search, 
another Australian oil 
group, which bought a 10.1 
per cent stake in Discovery 
after the Premier offer was 
announced, was reviewing 
the additional information. 

Oil Search has not ruled 
out the possibility of a rival 
offer. The company, which 
operates mainly in Papua 
New Guinea, has claimed 
that its purchase was driven 
by a desire to diversify and 
not by the Premier bid. 


Mr Steve Lowden, a Pre- 
mier director, said the 
higher offer was justified by 
a “greater understanding of 
Discovery’s assets”. Mr Low- 
den declined to say whether 
the latest Premier bid would 
be finaL 

The offer needs a mini- 
mum 50.1 per cent accep- 
tance level. The deadline has 
been pushed back one month 
to December 11- 

Discovery shares rose 
three cents to 80 cents, while 
in London Premier shares 
eased %p to 32%p. 




pnuttooj 


A* London Inti 

BaUjnatny $ ■ 

Barton — 

Body Stoop tatt 

bs ; 

Bata Resources 4 _ 


CUbPartmis $ 
Fflerum — 


WBW$ 

l utaw ppe Tech 

just $ - 

London & BWlio 

POdngton 

Premier Health 

Rom Bans — — - 
itoyai DtndVShoU — 

StnOsano $ -- 

Tandem 

Wwtport§ 


Yr to Jtey 3T 

6 rafts to June 30 
6 mttw to June 30 
. 6 mtha to Aug 3i 

5 mfts to June 30 

6 mttis to Ju» 30 
B friths to June 30 
6 mfts to June 30 
6 rathe to June so 

Yr to Juie 30 

B mfts to June 30 
6 rafts to June 30 
3 mtha to Sept 30 

Yr to June 30 

6 mfts to June 30 
6 rafts to Jusve 30 
6 filths to Sept 30 
6 mfts to June 30 
6 mfts to June 30 
9 mfts to Sept 30 
6 mlhs to June 30 
. B rafts to July 28 
Yr to Apr 30 


2.19 

0.0334 

154? 

IIS 

0 - 896 L 4 

0.084L 

Q.08L 

0.69714 

0.003 
2.74 
0.8231. 
2B6L4 
0263 L 
0.574 
021 8L 
2.1BL 
754 

0.361 L 


(107) 
(-) 
( 1.1 ) 
(9.1 ) 
(0.243 ) 

(0.12a) 

(05411) 
(0.11V ) 
GL93L4) 
(1.71 ) 
{-) 

( 2.01 ) 
(“) 

(0.401 ) 
( 0.101 ) 
0-61 ) 
HM) 
fi.i¥) 
P-62 ) 

(3.607# ) 
(0.105) 
£-11 > 
(0-041 ) 


Culm! 

Data at 

Cnraapondtig 

Tattl far 

Total tail 

payment (p) 

mam 

CMtend 

yoar 

war 

14,1 f^f 

Dec 18 

24 

16* 

4 

-# 


_ 

_ 

4* 

1.5 

Jan 9 

1.08 

- 

34 

nB 

- 

1.5 

- 

43 

nfl 

- 

nS 

- 

r* 

3.7 

Dec B 

- 

3.7 

- 

nil 

- 

0.43 

• - 

0.43 

ZB 

Dec 16 

53 

33 

73 

1.75 

Feb 14 

1.75 

- 

S 


The Metropolis of Tokyo 

U.S.$250,000,000 

7Vs per cent Guaranteed Bonds due 2006 

unconditionally and irrevocably guaranteed as to payment of principal and interest by 

JAPAN 


Issue Price 99.98 per cent. 


hwartmant Trust* 

Cairngorm BldSocc- 

HdaHy Special . 

KS UK Somfler - 

Ktohwort 

Earnings .shown baric, 
exception al crodt #4p s 


Cnreoi 
payment ip) 


"W whs in Sent 30 98.5 (95-50 ) 0X28 <- ) ■ 1.93 (- ) 1-4. 

J?Yt-toAua31 B 13642 (111.76) 0.081 £-324 ) 022 (0X8 ) - 

R nrftia to Sent 30 175.1B (152264) 0.32 (0.493 ) 1X2 (4.37 ) . 1 

■iSS ESSS 0.3 cun - 

' nhAtonrirmwmn net Howes to terackets are far cnfnwpontfng period, ^tnriud w I0p t 


DM) or Corrupouing Total tor Total tatt 
wymgit HMdend year year 


Stock.. 4Aftar exceptional charge. VAftar 

stock. ffNet income after special cracBts. 


1BJ International pic 


Fuji International Finance PLC 


S1NO LAND COMPANY LIMITED”” 

(a company incorporated in Hong Kong with limited babiUtyi > 

USS200.000.000 574 Convaartflyte Bonds dti* 2000 
fThe 'Bond®*) 
notice TO bondholders 

_ „ of sino Land Company United ("tha Company'! on 

December, 1996 - .. - 18 

SS Z™ i-Kf— 

<h«. *»i « » 

BvOrderof th, Boonl 

Eric Ip Sal Kwong 
Secretary 

Hong Kong — - 

cmBANCo . 


Wace share price 
halves on warning 


Share® in Wace Group 
yesterday almost halved in 
value after the UK printing 
company issued its second 
profits warning in six 
months and announced the 
sale or closure of several 
printing plants, writes Tim 
Burt 

The company saw its 
shares tumble from 134%p 
to 69Vip. compared with a 
12-month high of 284p, after 
It warned the £13.4m cost of 
withdrawing from low mar- 
gin activities would push it 
into loss. Wace, the world's 
largest pre-press printing 
specialist, had been expec- 
ted to report.jwe-feix profits 


of £i2m-£14m this year. 

Yesterday, however, it 
said sales- growth had foiled 
to materialise and operating 
profits would be well below 
expectations. The announce- 
ment follows a similar 
warning in May, when it 
was hit by destocking, 
higher raw material costs 
and price pressure. 

In a bid to stem the 
decline, ft announced plans 
to close its Glasgow plant 
and its small New York 
printing site. It will also sell 
its us print businesses in 
Grand Rapids and Memphis 
and seek a buyer for its 
Dutch printing operation. 


Goldman Sachs International 
Paribas Capital Markets 


CS First Boston 
DKB International 
Morgan Stanley & Co. 

Iftirvinlliiiial 

SBC Warburg 


AttnMofSttSBMonaraurni 


Merrill Lynch International 
Tokyo-Mitsubishi International pic 

Deutsche Morgan Grenfell 
J.P. Morgan Securities Ltd. 
Nikko Europe Pic 

UBS Limited 












24 


FINANCIAL TEMES FRIDAY NOVEMBER 1 *996 


INTERNATIONAL CAPITAL MARKETS 


Brussels announcement lifts Europe’s high-yielders 


Emu ‘likely to be positive’ for member countries’ ratings 


European Monetary Union is likely to 
be positive or at worst neutral for the 
credit ratings of member countries, 
according to EBCA, the European rat- 
ing agency, writes Richard Lapper. 
Sharp falls in borrowing and debt ser- 
vicing costs, reflecting the fall in bond 

yields, would be the main benefit, and 


would offset the loss for some coun- 
tries of triple A domestic currency 
credit ratings. 

Mr Christopher Huhne of IBCA esti- 
mated that gains stemming frtom lower 
interest payments would be particu- 
larly large for Spain, Portugal and 
Italy, ranging from 2.5 to 6 per cent of 


GDP. He said when the credibility of 
the union bad been established, the 
Emu area would be awarded its own 
triple AAA rating. Member govern- 
ments would not be automatically 
rated AAA because, although they 
would have the power to tax in euros 
they would be unable to print money. 


GOVERNMENT BONDS 


By Richard Lapper 
and Richard Adams 
in London, and Usa 
Bransten in New York 

The European Commission’s 
decision formally to back 
France's controversial deficit 
reduction measures buoyed 
high-yielding European 
bonds, ending the jitters 
which have dogged these 
markets in recent weeks. 

Italian and Spanish bonds 
both outperformed on expec- 
tations that both countries 
will have further scope to 
reduce fiscal deficits in order 
to meet the Maastricht crite- 
ria for monetary union. 

At Liffe, Italy’s December 
BTP contract gained 0.78 to 
settle at 123.48. In the cash 
market, the yield spread 
over Germany - as mea- 
sured by the J.P. Morgan 
ME UR table - fell from 217 
to 214 basis points. 


Mr Alex Cooper, manager 
with Tullett and Tokyo, said 
that at Liffe there had been 
fresh - mainly domestic - 
buying of BTP contracts, 
although some U$ invest- 
ment banks were still buy- 
ing German bunds and sell- 
ing BTPs. Nevertheless, the 
EC announcement "had an 
effect on all the high yield- 
ers and brought hope back 
into the convergence 
trades”, he said. 

Spanish bond markets also 
had a good day, with the 
10-year December bono gain- 
ing 0.62 at Meff to settle at 
107.28. In the cash market 
the 10-year spread over 
bunds narrowed by 7 basis 
points to 179. 

Ms Phyllis Reed, European 
bond strategist at BZW, said 
the decision had helped push 
convergence trades a bit fur- 
ther with yield spreads over 
Germany likely to narrow. 

"There is a good reason to 
push the spreads in further. 


In the near term people will 
start talking about 150 basis 
points in Spain and 200 basis 
points In Italy,” she said. 

French bonds also gained 
ground with the yield spread 
of German bunds over QATs 
widening out by a 2 basis 
points to 4. At Matif the 
December OAT future 
gained 0-22 to settle at 126.44. 
German bonds also made 
gains, with the 10 -year 
December contract settling 
at 99.60. up 0.12. 

In the UR. the fall-out 
from Wednesday's unex- 


pected interest rate cut con- 
tinued to subdue volume and 
prices in the gilt and money 
markets. Long gilt futures 
fell for the second day on 
Liffe in London. After reach- 
ing a high of 109.29, the con- 
tract settled at 109.10, down 
from 109.17. In the cash mar- 
ket, the benchmark 1 0 -year 
gilt drifted lower in light 
trading to 99%, a fall of 
^ from 99& the previous 
day. The yield rose 3 basis 
points to 7.62 per cent. Call- 
ing 4 points against bunds. 

The price of the 9 per cent 


2008 bond fell from 110& to 
109g. its yield was up 3 basis 
points to 7.73. 

Trading in sterling inter- 
est rate futures was also 
quiet, with the December 
1996 falling 0.3 to 93.71 and 
January 1997 contracts Call- 
ing 0.4 to 93^2. 

The approach of the end of 
the month meant that liquid- 
ity in the money markets 
was tight. The Bank of 
England forecast a large 
shortage by recent standards 
of £1.5bn for the day, of 
which only £ 21 5m had been 


supplied by the midday 
round. 

Bat by the afternoon 
round the clearing banks* 
desire for cash saw the 
shortage met by £l-214bn 
supplied in a S3 November 
15 repo. 

Mr Philip Shaw, of Union 
Discount in London, said the 
money markets were still 
adjusting to the interest rate 
change. “In practice it usu- 
ally takes time for the larger 
players to assess the mar- 
ket,” Mr Shaw said, adding 
that there was a shortage of 


hnnir bills on offer, because 
institutions needed to keep 
them an their books at the 
end of the month. 

US Treasury prices recov- 
ered Wednesday's losses, but 
held within a narrow range 
as economic data provided 
little new information about 
the direction of the economy 
and traders waited for fig- 
ures on October employ- 
ment, which are due out 
today. 

At midday, the benchmark 
30-year Treasury was £ 
stronger at lOOfi to yield 
6.678 per cent, while at the 
short end the two-year note 
rose £ at 100£. yielding 5.757 
per cent. The December 30- 
year bond future added A to 
112ft. 

Personal income rose 0.6 
per cent in September, 
largely in line with econo- 
mists' expectations, but 
consumer spending was 
weak, advancing just 0.1 per 
cent. 


The low rate of consump- 
tion did little to comfort the 
market, as it was hinted at 
in the weak consumption fig- 
ure in the third-quarter 
gross domestic product fig- 
ure released yesterday. 

Instead, the increase in 
warning s led many econo- 
mists to speculate that con- 
sumer spending might lead 
to stronger economic growth 
in the fourth quarter. Ms 
Cheryl Katz, a senior econo- 
mist at Merrill Lynch, said: 
"We believe that consumer 
pending will pick up in the 
fourth quarter, but remain 
subdued.” 

Figures from the Chicago 
Association of Purchasing 
Management, which are 
widely viewed as an indica- 
tor of the national figures 
due out today, showed mid- 
western business activity 
remained flat in October, but 
a sharp drop In the prices 
index did provide some com- 
fort to the market. 


NatWest offering warmly received 


INTERNATIONAL BONDS 


By Samer Iskandar 

When NatWest Markets 
yesterday launched its long- 
awaited corporate loan 
securitisation, other banks 
were surprised and disap- 
pointed to be told by the 
lead manager that it could 
spare no paper. After all, the 
11 classes of notes amounted 
to $5bn. 

But in spite of its size, the 
deal was almost entirely pre- 
placed by NatWest. the book 
runner, with help from six 
co-lead managers. 

The Rose Funding notes 
represent roughly one-third 
of corporate loans to clients 
of National Westminster 
Bank, repackaged into trade- 
able securities - bonds 
backed by an asset The deal 
is the first securitisation of 
its kind in Europe. NatWest 


Markets handled the place- 
ment of 97 per cent of the 
amount leaving the equiva- 
lent of $ 180 m to be sold by 
the co-leads. 

Traders said the deal was 
warmly received in the mar- 
ket due to extensive pre- 
launch marketing, with bids 
on the dollar-denominated 
notes reportedly totalling 
almost three times the 
$ 2 .ibn on offer. 

Bankers in London also 
pointed out the geographical 
diversity of demand, with a 
marked preference by US 
investors for the most senior 
- Class Al - notes, offered 
to “qualified institutional 
buyers” under SEC rule 
144a, while Asian buyers 
were said to be more 
attracted to the subordinated 
Class A3 paper, which offers 
a higher yield. 

“We were very pleased 
with how it all went", said a 


NatWest officiaL "We could 
soon be back in the market." 

Although all the loans 
were of a quality equivalent 
to a double- A rating, some of 
the Rose securities have 
lower grades. This was done 
by attributing different lev- 
els of seniority to the notes, 
thereby allowing investors 
to choose from a large array 
of risk/retum ratios. 

Elsewhere, Greece issued 
DMlbn of 10-year bonds 
offering 80 basis points over 
the equivalent bund. Merrill 
Lynch, joint lead manager 
with DG Bank, admitted that 
the pricing was “ambitious’*, 
but said the paper was none- 
theless well received, with 
preferential tax treatment 
favouring sales in Germany 
and Austria. 

Deutsche Pfandbrief, an 
active borrower in recent 
days, also raised DMlbn yes- 
terday. The issue, however. 


was aimed at Asian inves- 
tors. Although it follows the 
traditional German issuance 
procedure, the issue Is listed 
in Singapore. Bankers said 
up to half the amount could 
end up in Asia - roughly 
equally split between Japan 
and other markets - against 
between 20 per cent and 40 
per cent for traditional euro- 
mark bonds. 

The sterling sector saw a 
£l50m add-on to an existing 
five-year deal by Abbey 
National. Deutsche Morgan 
Grenfell, the lead manager, 
said that although supply of 
sterling bonds had been 
abundant in recent weeks, 
there remained a shortage in 
the five-year area. 

A FFrl.5bn issue by Rayer- 
Lsche Hypothekenbank con- 
trasted with recent difficult 
launches in the French mar- 
ket. "because it fills a gap”, 
according to Caisse des 


Depots et Consignations, 
joint lead manager with 
BZW. 

Although Bayer Hypo had 
already tapped the French 
market, CDC said this was 
its longest maturity yet. 
which meant “dealing with a 
brand new set of investors’* 
— mainly French ins urance 
companies. Observers 
pointed out that a distortion 
in the market, whereby swap 
rates favoured issuance in 
12 years while investor 
demand was concentrated in 
10 years, was partly respon- 
sible for recent fiascos. This 
anomaly, however, yesterday 
seemed to be fading- 

One syndicate official in 
Paris said: “there are quite 
a few borrowers lined up, 
but 1 am not sure demand 
will follow.” 

Bank ers also said a new 
jumbo issue by several Ger- 
man Linder was expected. 


New international bond issues 



Amnrt 

Cotaien 

Price 

Matutty 

Fees 

Spread 

Book-mar 

Buiiuumi 

re. % 



%_ 


_ 

;* US.DOtMltS ' 

*'. 5 / .Y.v 


' ‘ ■ :: 

’ 




ILOA.E. FutKSfXj(fl«Cla Ala 

750 

(al) 

loaoofl 

Nov 2001 

0.1 OR 

- 

NatWest Markets 

RO.S.E Funding* Cts A2a 

750 

(aZ) 

100.0OR 

Nov 2001 

Q.19R 

- 

NatWest Markets 

R-O^-E. Funcftrvgt Cb A3a 

500 

(a3) 

100-00H 

Nov 2001 

0^3R 

- 

NatWest Markets 

Dormitory Authority NVfsfl 

774 

ia 

(H) 

(g) 

to) 

- 

Lehman Brothers 

Nonwest Corpt 

300 

(W 

90.91 R 

Nov 2001 

O20R 

- 

Morgan Stanley Intt 

GECC 

250 

ejzs 

B9.77R 

Nov 2001 

0558 

6(BWH-01) 

SBC Warburg 

■ d-marks ;• 

. 


' - a. • 





Hellenic RepuMc 

ibn 

6.75 

W.70R 

Nov 2006 

0.608 

80(4/06bund) DG Bank/MotriU Lynch 

DePfa 

Ibrt 

4.75 

8897R 

NOV 2001 

0558 

5(8UK-01) 

CrmbnfcyMamlVMoigan 

Deutsche Hypothakenboik 

Ibn 

490 

9953 

Nov 1999 

0.19 

- 

ABN ArrUDrsd/HIbaAIBS 

Aflgemalne Hypthknbank^sjt 

500 

W 

100.19 

Nov 2006 

050 

- 

Deutsche Morgan GrenfeD 

Cotomtotef 

275 

CT 

99.92R 

Nov 2001 

0.63R 

- 

Deutsche Morgan Granlell 

■ STERLING • 7 ' 


* 

y, ■■ 





R.OS.E. FuneEngWtds Alb 

80 0 

(64) 

10a OCR 

Nav 2 001 

0.1OR 

- 

NatWest Markets 

RO.SE. FuntSnsR: Cto A2b 

BOO 

(a5) 

IOO.OOR 

Nov 2001 

0.19R 

- 

NatWest Markets 

FLO.S.E. Fundfrtg* Os A3 b 

600 

(aB) 

ioaooH 

Nov 2001 

053R 

- 

NatWest Markets 

AJiboy Ntnl Tramury Srv.(e) 

150 

7.13 

9997R 

Mar 2001 

0558 

17(B9fe-00) 

Deutsche Morgan GrerrieU 

■ FRENCH FRANCS ! 
Bayer Hypothekenbank 

iibn 

6.13 

99.65R 

Deo 2006 

0.358 

+22(1) 

OZW/COC 

Nedertandse Watrachpsbr* 
■ ITAUAN UFE " ' ” 

Ibn 

. . . : ■ 

6.00 

9920R 

Nov 2006 

0 338 

+150) 

ABN Amro Hose Govatl 

BGB Rnance taaland 

250bn 

zero 

88.73 

Nov 1998 

155 

- 

Caripio/IMI Luxembourg 

BayorVB 

200bn 

ais 

89.90R 

Dec 2006 

0508 

- 

Crodtto ltaSano 

Deidsche Rnonce NthrindJ) 

Itn 

zero 

undlsc 

Oct 2006 

undlsc 

- 

Deutsche Morgan Granlefl 

■ AUSTRALIAN DOLLARS • 




. •. = -v — *. 




SBAS* 

110 

650* 

10050 

Nov 2000 

irodlacl 

- 

KokusaKEroVToyo Trust 

. * - - 

'u • - .« ' 7 - 

- !l 

-» . 

- _ 





Fknl terra, nort-cfele untoss stated. Yield spread (over rtvnt gvt bond) at launch euppfted by lead manager. * Unlisted. * 
Floating-rate note. tSemFonnual coupon. R: fixed reefer price; toes shown at ra-offor i ever, aj IT -tranche issue worth 
approx SSbn. Shot let cpna. al) 3-mth USSLibor+Bbp. a2) 3-mth US$Ubor+180p. S3) 3-mth USSUbor+22bp. Ml 3-mth 
EUbor +8bp. aS) 3-mth nihnr +18bp. aS) 3-mth EUbor +22bp. afi) Fees latdbc. Cte A4a SSSm. 3mth USS Libor +40bp; 
CtoMb Cl 0m. 3mth niw +40bp. a7)Fee& imdisc; Cls A5a SZ7m. 3mth USSUbor +65bp; Os A5b Cl 0m, 3mth £Ubor+65bp. 
aB) Cb B 5100m. (4 3-mth Libor +5bp. cj 3-mth Libor aertu d) 3-mth Libor +140bp. a) Fungible with STGZSOm. Plus 249 
accrued Interest- f) Added to L3tiWlan. g) Multi-tranche band. Prtttrtg today. Q Over Interpolated yield, s) Short 1st coupon. 


WORLD BOND PRICES 


BENCHMARK GOVERNMENT BONDS 



Coupon 

Red 

Date 

Price 

Day's 

change 

Yield 

rar^.L 

W68K 

ago 

Month 

ago 

Austroia 

6.750 

11/06 

955630 

-0570 

7,41 

7.42 

7.06 

Austria 

5.875 

07/06 

9a 5400 

+0.100 

6.07 

6.10 

6 16 

Belgium 

7500 

05/06 

1065300 

+0.110 

0.12 

6.12 

6.40 

Canada ' 

7.000 

12/08 

104.0200 

-0-080 

6.45 

6.50 

756 

Denmark 

8.000 

03/06 

107.5800 

+0.080 

6.87 

6.88 

7.13 

France STAN 

5500 

TQ/U1 

1025820 

+0.090 

4.96 

457 

S.33 

OAT 

6500 

10/06 

1035900 

+0.190 

557 

6.00 

622 

Germany Bund 

6560 

04AM 

101.7100 

+0.100 

6.00 

6.05 

650 

Ireland 

B-ODO 

08/06 

107.3500 

-0.100 

654 

6.94 

7.18 

Italy 

9.500 

OZA16 

108.7000 

+0510 

0.13T 

8.13 

8.84 

Japan No 140 

6.600 

06/01 

122.439 T 

*0.030 

1.49 

1.52 

1.77 

No 182 

3.000 

09/05 

1035056 

+0.190 

252 

2-64 

2.85 

Netherlands 

8.500 

06/06 

118.4600 

+0.130 

5.93 

S.B7 

657 

Portugal 

9.500 

02/06 

1125200 

+0.330 

7.57 

759 

857 

Spain 

8.800 

04/06 

106.4400 

+0.610 

7.70 

7.81 

8.11 

Sweden 

6.000 

02/05 

91.9845 

-0.060 

7.31 

750 

7.65 

UK Gilts 

8.000 

12/00 

103-03 

-3/32 

7.11 

657 

7.10 


7.500 

12/06 

99-04 

-7/32 

7.62 

7.62 

7.82 


aooo 

10AJ8 

109-26 

-7/32 

7.73 

7.73 

753 

US Treaswy * 

6.500 

10/06 

100-27 

+1/32 

658 

6.58 

6-64 


6.750 

08/26 

100-27 

+1/32 

8.68 

657 

755 

ECU (French Govl) 

7.000 

04/06 

1045100 

♦0540 

857 

657 

651 


London dosing. -New York ired-doy Ytatac Local niM standard. 

r Grow (inducing wthnortimg cox at TZ5 per cent payatta by nwtoMeid 

Rices: US. UK mi JZndH often m Oeatrar Same: MVS It eem a eonel 


US INTEREST RATES 


Lalesi 



Tnxnwy Bflts 

1 

1 




One man® — 

..... 

Ttoyere 

5i79 

Prtaieatt 

Broker tan «■ 

SV. 

7 

Una 111* fli ... 
Three month- 

‘ZZ'LZ. 516 

Three year 

Fbeyear 

5.82 

6.12 

Fretted* 

Fettfimts at hnnwidtan 

5% 

9* month 
(to yes — 

559 

5.43 

10-ytor 

30ya» 

640 

699 


BOND FUTURES AND OPTIONS 


France 

M NOTIONAL FRENCH BOND FUTURES (MATIF) FFrSOO.OOO 


■ BUND FUTURES OPTIONS (LIFFE) DM250,000 points of 100* 


StrSre 

Price 

Dec 

Jan 

GALLS “ 
Feb 

Mar 

Dec 

Jan 

PUTS 

Feb 

Mar 

0950 

a 54 

054 

0.56 

a69 

0.44 

1.26 

1.48 

1.61 

10000 

050 

051 

040 

051 

0.70 

153 

152 

1.93 

10060 

0.15 

0.12 

□58 

0.38 

1.05 

2.04 

250 

250 

EaL voL total. Cato 12079 Puts 0822. Prarioua day^ open tat. Ctoa 104064 Pub 179908 


Italy 

■ NOTIONAL ITALIAN GOVT. BONO (BTP) FUTURES 

(UFFE)* Lea 200m lOMhs of 10036 

Open Sett price Change High Low Eat vot Open int 
Dec 122.90 123/48 +0.78 123.85 122.90 45891 84560 

Mar 1 22.32 1 22.89 +0.77 122.32 12232 140 3603 

■ ITALIAN GOVT. BOND (BTP) RJTUBES OPTIONS (LFFE) Ura2Q0m IQOtta d 100% 


Strike 

Price 

Dec 

■ CALLS 

Mar 

Dec 

. purs 

Mar 

12300 

157 

155 

0.79 

258 

12390 

058 

1.71 

1.00 

252 

12400 

0.74 

1.49 

156 

250 


EaL vd. total. Cab 7080 Puts 1658. Previous coy a open hr. Cafe 192582 Putt 179994 


Spain 

■ NOTIONAL SPANISH BOND FUTURES (MEFF) 

Open Sett price Change Hltfi Low Eat- vgL Open 1m. 

Dec 106.70 107.31 +O.B1 107.58 108.70 78.006 70,017 

Mar - 106.74 +0.82 - - 88 338 

UK 

■ NOTIONAL UK GILT FUTURES (UFFE)* £30.000 32nd8 of 10095 

Open Sett price Change High Low Eat vol Open hit 

Dec 100-19 109-10 -0-07 109-29 109-03 100836 154582 

Mar 108-26 108-16 -0-05 108-20 106-28 53 2209 

■ LONG GILT FUTURES OPTIONS (UFFE) gSO.OOO 64ttis of 100% 


Strike 

Price 

Dec 

Jar 

CALLS “ 
Feb 

Mar 

Oec 

Jan 

PUTS 

Feb 

Mar 

100 

1-01 

0-63 

1-21 

1-37 

0-45 

1-31 

1-53 

2-05 

110 

0-34 

009 

0-59 

1-10 

1-14 

2-07 

2-27 

2-42 

111 

0-16 

0-23 

0-40 

0-S4 

1-60 

2-55 

3-08 

3-22 

EOL vd. tom L Cato 10142 RjM 3*85. Prewous OaVa epan tat, C*s 4O140 Puts 20030 


Ecu 



Open 

Sett price 

Charge 

High 

Low 

Est vd. Open bn. 

Dec 

126.38 

126.44 

+052 

126.62 

12656 

96.679 

188.917 

Mar 

126.36 

126.44 

+052 

126.52 

126.36 

2.454 

38,817 

Jun 

125.10 

125.20 

*054 

12552 

125.10 

620 

5.614 


■ LONG TERM FRENCH BONO OPTIONS (MATIF) 


bfntup 



- CALLS - 



PUTS - 


Price 

Nov 

Dec 

Mar 

Nov 

Dec 

Mar 

124 

2.52 


- 

05B 

050 

0.52 

125 

1.64 

- 

- 

0.19 

0.38 

0.78 

128 

089 

1.15 

1.61 

043 

0.70 

1.12 

127 

0.37 

0.65 

1.09 

- 

■ 

- 

128 

0.13 

0.33 

069 

- 

- 

- 

Ew vcJ 

■GUI. Cite 17,970 Puts 1 J.SM Previous Cay's opwi nt. Cabs 162.776 Putt 147,7*0 


■ ECU BOND FUTURES (MATIF) ECU 100.000 



Open 

Sea price 

Change 

High 

Low 

Eat voL Open Int 

Dec 

83.80 

3358 

+0.06 

94.10 

9350 

2511 

7539 

Mar 

- 

93.54 

*0.08 

- 

- 

- 

26 

US 








■ US TREASURY BOND FUTURES (CBT) SI 00.000 32nds of 10096 



Open 

Latest 

Change 

High 

Low 

Est vd. 

Open Int 

Dec 

112-18 

112-21 

+0-02 

112-26 

112-12 

423539 

387.155 

Mar 

112-00 

112-07 

*0-03 

112-10 

112-00 

2.567 

25.873 

Jun 

- 

111-30 

- 

- 

- 

477 

5536 


Germany 

to NOTIONAL GERMAN BUND FUTURES QJFFE)* DMTSO.OOO IQOths of 100% 


Open 

Sett price 

Change 

High 

Low 

EaL vol 

Open mL 

0944 

99.60 

*0.12 

99.71 

99/44 

113950 

252357 

98.54 

9856 

♦O.I2 

98.66 

98 54 

1375 

15601 


Japan 

■ NOTIONAL LONG TERM JAPANESE GOVT. BOND FUTURES 

(UFFE) YIQOm IQOths ol 100% 

Open Close Change H&i Low Eat. vd Open Int. 
Dec 12548 12548 12532 2073 nfe 

Mar 124 56 124.59 124.48 456 n/a 

• UFFE runroa otto Bated on APT. Al Opari taurom flea. are tor prevtaua duy. 


UK GILTS PRICES 


. two 

tot Red Pncof *<s- 


W Lon 


Rota 

H 

Rea 

FnceE *or- 

«9» 

Lon 

Traa«7%pc:W»»—- 

756 

re: 

99ft 

-ft 

lOtij 

9*!2 

Trsai7Viica»6W. ._ 

7.70 

765 

100JJ 

-ft 

103% 

96,’. 

Treas8prSXG-6t* 

704 

754 

102 

*ft 

i(Wi 

97% 

rrea n<iPiaU3-7 . .. 

«7t 

745 

<Xii 

-% 

I2Sft 

nay 

Tren8%pc 2DD7 tt 

mw 

768 

1951) 

-ft 

10BIS 

101ft 

Traas 9pc 7008 tt 

arc 

773 

109)2 


112)2 

103U 

TreuBpcTaOS 

786 

7.7E 

101 J3 

-ft 

104% 

98J1 

Tranfi i/*pc3HB« . 

7N 

787 

86% 

-ft 

W. 

81% 

Canr9pc LnTOIl It 

a 19 

70S 

loa'i 

-A 

1171/ 

104% 


(2)fttn£ +cr- me Low 


Ciswsrawn iflpc 1996 - . 

9» 

619 

109% 


I03« 

100% 

Turn 13% pc 1997ft 

1105 

a ic 

101% 


107% 

100% 

tish 10%PC 19J? — . 

10 37 

598 

<01ft 


107ft 

100,' 

Tfcu Dw ipc 1997ff- . 

646 

en 

100ft 


tiny 

>00)3 

Time B%pe 1907ft 

S58 

677 

ioiu 

- i r 

10753 

IOIU 

Each UpctflS? ... . 

1386 

634 

1118,1 

~ir 

115)3 

IUWJ 

Each 9>«pc 1998 

940 

642 

103B 


1«l* 

100, 1 , 

ircas7l*Kl993tl . . 

718 

6 51 

too;: 

-ft 

109)3 

100% 

Haas I5%pc OBtf .. . 

1J4C 

670 

n5ii 

*A 

UWj 

11513 

Ekjii. T ic 1996 .. - 

10 93 

ft77 

109Q 


II4V| 

1C9Q 

Tce»0%pCia99tf- - 

902 

6^ 

105% 


108ft 

■ lb ft 

1rnj*F48 Rata 1999 

- 

- 




iaoft 

*3\ 

Etth i:>spc 1999 . . . 

10 96 

6 85 

111% 

-ft 

H8() 

non 

Trwi UJijpe ifflo — 

970 

698 

108ft 


117ft 

108ft 

Tress 6PC 1999 ft 

6.11 

683 

srtS 



B9>4 

9i% 

Cttiwiuan 10>4K 1999 . 

9« 

596 

100(7 

-i. 

T 1214 

109(1 

Cora 9pc flXWf 

B51 

701 

I05U 

-ft 

iiwi:- 

uni3 

lHa*l3pcMW .. _ - 

11)94 

7.12 

usa 

-ft 

124)3 

'Nil 

Ireas 14 k 19TO-1 . . 

12b5 

563 

non 


1 17 ft 

HiH) 

Tnss 3gc 20Wft 

776 

711 

103ft 

■M 

105% 

101ft 

Tims Fla ftto 2001 - 

570 

“ 




*»* 

UM. 

Trex 10DC 3001 

909 

730 

110ft 


114 

lOOfl 


4%pf»tt — 1135 .fl) 

2%|>C HI 4783) 

r%pcTO (710 

4%pcTK« It 35.0 

QiC-OE 453.31 

2%pe-® 478 a 

Z'tfC'll (74fl 

2%l*13 4883 

3%gc'iB 481 St 

r%« 20 man 

: l iPC74# (97.71 

4%te Jttff — 413S.lt 


09 

266 

131 

an 

117 

049 

IX 

a<3 

1*7 

ia 

153 

153 


2J9 lias 

123 1B«% 
134 iacH2 
138 117JJ 
146 183% 
353 170,'. 
357 I75J] 
161 144,' t 
38* 1S3B 
186 1*7* 
168 122ft 
167 120JJ 


-A H4% 111ft 
-D 1B5fl 176% 
-% I8II1 171 JS 
HSfi 112J| 

-% iai>t tnu 
-JJ 172 181ft 

-ft inn ifiBft 

-% l«il 138ft 
-fi IBS 145A 
-% 'toft 133U 
-Ji 1MJ| 115ft 
-A 122fi 1134) 


Tress 9oc 2012ft 

818 

7 88 

110ft 

-i 

113ft 

104JJ 

Tiro S%BC 2008- l^f 

683 

766 

soy 

-ft 

82% 

75% 

TrMsSoeJOISfJ 

792 

799 

101ft 

u 

103K 

9ft 

IresaTVpcSOIS'lSff— 

785 

788 

9B% 


10 m 

93U 

TrenftsiDISff 

79» 

787 

101ft 

"ft 

10*i 

99ii 

Tmasa%pe20i7ff 

800 

7S3 

108ft 

-ft 

111% 

102% 

Erthiaac SOI 3-1 7 

ass 

789 

138% 

-ft 

141)3 

13013 

Tress Sac 2021 « 

790 

788 

101% 

-A 

103% 

95« 


Prospective retd i tara npite M tele on protec te d Wfetkjn of hi 
10% and O 5V « Hgeea In p ai a nt he a e s show HP! base tar 
Mating do 8 month* prtor 10 tssua) and have been ad|uewd 10 
reflect nbaang of m to 100 n February 1887. Conversion 
factor 3.9*5 FW tor Februsy 1996: 150.9 and lor S eptemuer 
1996- 1518 


Other Fixed Interest 


-tit*- _ - 52mk_ 

Bates tal tod Price £* nr- Hqp ue> 


Rwta RRaanTaatt 

Irsas 7 dc 2001 ft 

Trcaj 9 ipc 2SD? „ . . 
Tens 9pc TOttJff . . 
liras icee 2003 _. .. . 

7 07 
878 
7.75 
881 

722 

737 

737 

744 

99d 

Ml 

103ft 

1131! 

-A 

-ft 

-% 

-% 

101 A 

114% 

lOSil 

117ft 

96% 

108% 

99)1 

38 

menu 

811 





-% 

0*1) 

78% War Loan 3%oOi 

795 

Cafwnttifli2ic2004._ 

Tre>s6W 2004ff 

Ctn»9%ps3#5 — 

352 

707 

850 

755 
752 
7 JO 

111ft 

os,; 

lltfi 

-.1 

"A 

-jj 

IMft 

Vu 

11*0 

1071: 
91 ft 
108ft 

GowHs* SI All . ... 
TiwSpCGEAft 

577 

818 

Treos 1I 1 »c200J-5 — 
TreasB 'rPCZOOS# — 

802 

7bfl 

low: 

-a 

I31 *a 
lOBii 

101% Tim Jijpc 

ait 





AsurOw 10%pc2009_. 

860 

794 

118 


130 

1118 




Stott iHa*3012 

909 

845 ITBljd 


ITS 

uaij 




kta a* s%pe 'ia 

804 

- 

105% 



105% 

105% 




toe Gap 1986. 

BBS 

- 

104 



104 

10* 




13DC Y7-2 

11.12 


110% 


110% 

110% 




If«ai3 l roc2006 — 

1011 

- 

133% 


1381a 

1?fl 


Hj 


^ Lhmwi3%CclTOl 

an/ 

- 

39 


41 

33 

44 

-4 

4%*. 

41.1 LCC3K :««■ — • 

008 


33 



36 

33% 

60 d 


62% 

58ft *bach«arlliaie3>07- 

9J9 

833 

122 lj 


134% 

117 

36|1 



J* ttfl.Wtr.3oeF 

LB0 

7.10 

79 


BO 

70>a 



FteleADBBj3Vc2021 

- 

421 

143% 



144ft 

133 

JIB 


33% 

28% 4%oclL21&4- - 

- 

*33 

138% 

.. _ 

140% 

130% 

30)2 

1* 

32ft 

23% UttUttSBtaieljKaM 

12 37 

- 

135 


136% 

120 


to Tte' tuck. *t Tax-awe to non+esnarci on a ntfe-n rion. E Auction con. «t Ex dtvtoond. dosing md-erices ore shown In petavte per £100 nonenol cf Wtvfc 
Prospective rad keta-UNuid redorafton yttftb ore cafotond by HSBC C™*w»a ton Bn* o’ Ei^iwvd etoeng pdeaa. 


FTSE Actuaries Govt. Securities UK Indices 


Price IntScee 

UK GBIto 

Thu 
Oct 31 

Day's 
change 96 

Wed 
Oct 30 

Accrued 

Interest 

xd at#, 
ytd 


— Low coupon yield — ■ 
Oct 31 Oct 30 Yr. ago 

Medhrni coupon yield ■- Mgh coupon ykrid- 
Oct 31 Oct 30 Yr. ago Oct 31 Oct 30 Yr. ago 

1 Up to 5 yean (21) 

121.39 

-0.04 

121.45 

2.74 

8.04 

5 yrs 

7.22 720 

7/42 

727 

7.23 7/42 7.32 

729 

7.51 

2 5-15 years (19) 

749.30 

-0.12 

149.49 

Z8S 

9.09 

T5 yrs 

7-83 7-81 

7.99 

122 

7.80 8.04 7.85 

7.83 

811 

3 Over 15 years (8) 

166.52 

-0.15 

168.78 

3.79 

9.83 

20 yrs 

7.83 7.91 

804 

7.90 

728 8.07 7.92 

721 

814 


191.43 

-a 31 

192.02 

4.68 

aB3 

treed-t 

&OQ 757 

8.13 





5 All stocks (54) 

143*1 

-0.10 

14356 

3.02 

8.92 















— krtletlOfl 5% — 


— Inflation 1096 — 



Index-naked 







Oct 31 Oct 30 Yr. ago 

Oct 31 Oct 30 Yr. ago 



6 Up to 5 years (2) 

202.46 

-Q.15 

202.78 

0.47 

528 

Up to 5 yrs 

3.17 3.13 

322 


2J2 2.47 2.10 



7 Over 5 years (109 

193*9 

-0.33 

194.23 

1/43 

4.17 

Over 5 yrs 

3.00 357 

3.87 


3^0 3.37 3-47 



8 AD stocks (12) 

193.48 

-0.31 

194J08 

1.32 

4^1 









A verage gross redgropbon yWte ere shown above. Coupon Bendc Low: Mt-Tnvfb; Mateen: 8%-1M»%: High: UN and over, t Flat ywks. yta Vow to deto. 


FT Fixed Interest Indices Gilt Edged Activity Indices 

Oct 31 Oct 30 Oct 29 Qct 28 Oct 25 Yr ago HgT Low* Oct 30 Oct29 Oct 28 Oct 25 Oct 24 

Govt Secs. (UK) 98.89 03.88 9320 94.14 94.2? 94.14 96h4 91.50 Git Edged bargains 86^3 85.3 1225 97.6 101.1 

Fixed interest 115.35 115.46 115.31 115J0 115.50 112.42 116.45 110.74 ■ 5^toy average 985 99.0 108.9 B6.9 109.5 

O FT8E M a metionel Led 1996. Al righto te—tw d . • tar 1901 Government ScartM high since c ompArtra: 127.4 (tWOI/35). low 4118 KEVD1/75L Read WWW 
Ntfl erica compMton: 13387 QiiOIA*). low 5063 (03/01/75). Bate 100: Qowrrxnan t Secuteee IShOOS and Fixed tatarasl 1901 3E acbvfty Megs rebaaed 1974. 


FT7ISMA INTERNATIONAL BOND SERVICE 


Ltoad we toe latest I to national 


bonds for ntieh toere ia in adequate nctntoy 
bauad Bid Oder Chg Yield 


pdoaa at 700 pm on October 31 
toeued Bd OCtar ChgYWd 


Issued Bid Oder Chg Yield 


US. DOLLAR STRAIOKTS 

AEbsy Tnasuy 8^ £0 — 1000 99% 

ABN Also Bank 7^ 05 1000 1021, 

AttanOwBk7^23 500 09% 


Sweden 8 07 


Ateita Pro** 7*8 aa 
Asian Dev Boric 8*4 05 . 
AutfaB^ 00 . 


1000 1031, 
. 750 07^ 
.400 108*2 


Bedan-Wuedt L-FtaB^OO — 1000 IOSJj 

anomod 7\ 04 1000 84 

Bank Nod Gemeerten 7 99 1000 102^ 

Bo)v Vodrotk 8 1 , 00 500 105^ 

Bayun 54 03 1000 94*2 

Bittah Cokntia 73i Q2 

8rtbhG*s021 

Canada Big ® 

Cheung Kcrg FVi 5I7 96 
omaBizD* 

Oedi FanctoOlg 99 

Denmark 5\ 96 

EanJapaiMwav^O* 

BBS 04 
ffl9>4 97 
Sac da Ftonoa 9 96 
E»4n Bade 0 02 
Export Oar Oorp 98 
Exxon Captol004 — 

Fad Home loan 7 1 * 99 
Federal Nail Mon 740 04 
Finland 6\ 97 
Fcad Motar CredR 6U 96 
Qananf Mb0l3 
N RcnceS 1 , 98 
ttr-ATerDwB 1 ! 06 
WarAmer Dav 7*j 05 
MFtaanca5^*99 
Sair B 03 
Bdy6%23 
Jqai Dev St 8% 01 
Korea Bee Power EPa 03 
MatsuTtta Bee 02 - 
Onav3 7>B 03 
Qatar Kotectoar* 8^ 01 
Pamigal 54* 03 
Quabse Hyde 9ft 96 
Quebec Plw998 
SAS1099 
SNCF 9^2 96 
Span 8*2 69 
Sweden 6>2 03 
Tomoecco Vtoey 6 00 
Terrasaaa Ualsy 6 1 , 05 . 

Tckpi Bee Rcawar 6*g 03 
Toyoto Motor 5% 66 
Urttad lAgdom 7^s 02 
Wall Ctanay 01 
Wbric Bank 61, 05 
WarU Bar* 6^96 

DEUTSCHE MARK STTUKHTB 

««b 6>i 24 2000 

Bafen-WuHtt L-Atomoe 6 98 . 2000 104% 

Creek Fender 7I4 03 2000 106^ 

□aranak 6% 96 2000 103% 


851 UtoOKhgdcm 7l*07 

704 Wtowgan W Fto 7 03 

73B WtartdBn*5%03 

533 World Bank 7*, 05 

871 

621 SWISS FRANC STRAIGHTS 
623 Asian Dm Bmk 016 


.2500 104% 
S600 100% 
1000 106% 
3000 101% 
3000 107% 


84% -% 1072 Austria 4% 00 . 


500 



604 Oounsl Ettope 4% 96 . 

627 Dwnwk*%09 

650 BB 3% 99 

646 ffl6%04 

7 JO Frtand 7% 99 


17% 00. 


tattr Amsr Dw 4% 03 . 

Onbsto6%03 

Ouabec Hyde 5 06 _ 
S4CF704, 


14% 03 

Wcrid Bttk 021 

556 Wcrid Berk 701 

593 

845 YSfSnUIOHTS 

557 Sa^srn 599 — 

858 Credi Fancier 4% 02 
610 EB B% DO . 


1000 106 
- 250 103% 
1000 105% 
1000 103% 
-300 114% 
.300 112% 
_100 115% 
-600 106 
-400 113% 
_ 100 103 

-450 119 

. 500 105% 
-700 29% 
-600 115% 


_ 75000 111% 

_ 75000 118% 

,100000 117% 
687 Bv+n Bank Japan 4% 03 _ 105000 113% 

595 War Ame Dev 7% 00 30000 120% 

643 My 3% 01 300300 107% 

846 toy 504 200000 117% 

602 Japan Dev Sc $99 100000 111% 

670 Japan Dav Bk6% 01 120DCD 122 

673 SNCF 6% 00 30000 117% 

125000 119% 
.150000 106 


593 Spdn5%0Z. 

660 Sweden 4% 96 

752 World Bark 5% (B 

030 

704 OTHB1 STRAIGHTS 
859 Cedi Bandar 793 02 LR . 

666 SB 7% Cb IFf 

639 WwW Bank 8% 04 LFt — 
A8N Amro 6% 00 B _ 

Autota6%99H 

BN Canada 10% 09 CS 


.260000 117% 


2000 


104 
. 3000 10B 

. 

, 1000 10B% 
. 1000 106 
ISO 113% 


SUdi Cduntata 7% 03 CS — 1250 106% 
Ctosdb M9 * Hsg 6% 99 C5 . 1000 106% 

SB 10% 98 CS 130 107% 

Sac da Ranee 9% 99 CS 275 112% 

KIW ha Fin 10 01 C$ 400 116 


673 Nppon Td Td 10% 99 C6 ■ 
642 OtartoB 03 CS 


.200 113% 
109% 


599 (Maria Hytto 10% 99 CS 500 113>2 

624 Oder KvtrcKxnk tO% 99 CS - 150 113 

OMbecHvdo?04CS 1000 102% 

Owbec Rw 10>2 96 CS 200 111 

Card Snpa 9 01 Rai 1100 114% 

Crack Fender S% 04 Ecu 1000 111% 


94% 


Depfa Firanca 6% 03 . 
Ctautete St Fta 7% 03 , 


SC B% 00 

— 2900 





LKB Baden-Wum 08 _ 

— 2250 

Noruqr 6% 98 

_ 15QD 

Span 7*4 03 

- 4000 


1500 102% 
2000 108% 
108 


tm 


94% 

107% 

103*2 

103 

106% 

106% 

106% 

105% 

104% 

101 % 

103% 

101 % 

10B% 


DetmarX 8% 02 Ecu 

6S3 B36 03Ecu 

4.13 m W 01 Ecu 

591 Fere del Sa 10% 98 Ecu . 


-% 399 BW 10% 00 Ecu. 


596 Unteri Mngdcm 9% 01 Ecu . 
591 ADC 1099 AS 


TQ00 113 
. 1100 103% 
. 1150 117% 
- 500 HS% 
. 1000 117% 
2750 114% 
.100 106 % 


452 Cam Sc (tenia 13% 99 AS- 100 116% 

455 BB 7% 99 AS 333 103% 

449 Mav Treaary Zero 0 20 AS — 1000 16% 

15B R & I Bark 7% 03 AS 

637 Sara Bk NSW 002 AS 

369 SB>A»tGaMfti902AS ISO 107% 

596 U*mt Austin 12 98 AS 150 105% 

566 Weston Auk Trees 7% 98 AS _ 100 101% 


.125 101% 
.300 107% 


104% 

103% 

106% 

101 % 

107% 


38% 

106% 

103% 

105% 

103% 

11^ 

112 % 

116 

106% 

114 

103% 

lift 

100 

20 % 

113% 


111 % 

113% 

117% 

113% 

120 % 

107% 

117% 

111 % 

122 % 

118 

719% 

105% 

117% 


105 

107 

106% 

106% 

1131% 

108% 

106% 

10B% 

112 % 

116% 

114 

109% 

113% 

113% 

103 
111 % 
114% 
111 % 
113% 

104 
117% 
106% 
117% 
114% 
107% 
117% 
104% 

18% 

101 % 

107% 

107% 

107% 

101 % 


-•a 

353 

Abbey Ndl Trewy 8 03 2 

— 1000 

101 1« 

101 J| 

-% 

7.73 


135 

MshZjndS%23£ 

150 




665 


598 

Drank 8^« 98 £ 

800 

99% 

100 


693 


559 

Depfa Bran 7%03E 

500 

BBS* 


-% 

7.79 


692 

BB800C 

— 1000 

102% 

102 s ! 

-% 

752 



Gtaxo Wricoms 84| 05 E — 

500 

103% 

10*1* 

J 4 

8.13 



Hanon 10% 97 E 

500 

1031b 

103% 

-% 

693 


515 

HSBC Hokfegs 1199 02 E 

153 116% 

116% 

J 4 

898 


257 

* 10»2 14 £ . 

400 

11B3g 

118% 

->4 

644 


2.17 

Acer Dev Bk 7 00 £ 

200 

9912 

99% 

-% 

7.15 


237 

Land Secs 9>z 07 £ 

200 

107 

107% 

-% 

846 


219 

Oman 11% Ol £ 

100 

112% 

112% 

-% 

791 

* 

448 

FbwogoiS^ 03 £ 

250 

1041b 

104% 

-% 

891 


285 

Saran Trent 11>2 99 £ — 

150 

1094 

110 


795 


324 

Tckyo Bk Praw 11 01 £ . 

150 I12V2 

112% 

-% 

796 


173 

TCNZFta 0% 02 N2S 

re 

107 

108 


798 

* 

394 

World Ba*999NZS 

250 

102% 

103% 

-% 

7.74 


495 

Credt Uxd 8 01 FFr 

— 8000 

103% 

103% 


814 


4.14 

Darak5%99F8- 

— 7000 

103% 

103% 


492 

* 

175 

Bee da France 3% 22 FFr _ 

3000 

122*8 

122% 

r>2 

698 


5.13 








118 

FLOATING RATE NOTES 







230 

199 

228 

138 

191 

291 

1.11 

1J6 

138 

196 

nm 


678 

622 

460 

394 

618 

636 

496 

412 

597 

5.72 

5.18 

627 

479 

503 

664 

491 

591 

642 



tested 

ad 

Otter 

Cepn 

Ataey Nte Treasury -ft 99 . 

- MED 

9895 

10082 

sewfl 

Bttkzrarica % 99 . . 

— 750 

Bags 

100.07 

5.7500 

Cbnacb-% 96 . 

- 2000 

9867 

9973 

52852 

CCGE 0 06 Ecu 

-200 

9882 

9084 

42578 

Commerzbk Q/5 Fin -% 98 . 

_ 750 

9981 

9989 

54082 

Crafl Lymnris ft 00 

_ 300 

9802 

9853 

55375 

Dreataa Ftaaice ft 98 DM . 

_ 1000 

10092 

10012 

11602 

Fed Na Mat -ft 00 

_ 1000 

99.73 

9985 

54492 

Ftafcrad-%99 

_ 1500 

9893 

IOOOO 

54609 

HaEe* BS 0 99 





M Bark Hi >4 99 

_ 500 

10044 

10054 

52812 


_ 1500 

10031 

10038 

5S938 

fc/y % 98 Bai 

_ 1500 

10830 

10031 

4-3125 

LKB BadmvWuwr Rn -% 96 

. 1000 

9990 

H9S7 

5.47GB 

Uoy* Bank Pern S 0.10 

-.800 

86.78 

6758 

88295 

UtayaaftQS 

_ 030 

aa 79 

99^4 

5ES75 

New Zaatand J* 99 

_ 1000 

9995 

10050 

54727 

Nova Scotia ft 99 

_ 500 

9899 

10007 

5.7266 

Ovk'bj 0 90 

- 2000 

loata 

10010 

15000 

Porfugri ft 99 DM 

. 2500 

10032 

10037 

11875 

CMCmc Hyrto 0 99 — 

-500 

oara 

99.79 

586C5 

Rerte098 

-500 

9979 

9985 

5X375 

Span -ft 02 nu 

_ 2000 

10013 

10019 

13477 

State 0k Vctorta Q05 99 

_ 125 

10000 

10013 

58469 

Sweden -% D1 .. 

- 

9958 

9958 

54141 

Unted Kingdam-% 01 2000 

9875 

99.73 

5.3750 

C0NVBTTBLE BONDS 







Com. 



fareuad 

Price 

Bid Otter 

Piwn. 


ABed-lyone 6% 06 C 
Gold KrigcxTfe 7% 00 . 


200 


.65 


604 88% 99% «4S1 

, - - , 137 113 114% -1344 

Gmd Msktsictosn 6% 00 — 710 437 117% 118% *75 

Htoson Amanca 239 01 420 17949 37% 37% 

tt^fengUndAOl 410 3195 37 97% -1277 

Land Seer 6% 02 £ 84 972 102 105 -413 

Lmo7%05£ 90 564 93% 95% 

2000 22 110% 111 4490 


496 

327 

4.47 

517 

529 

793 

7.16 

639 

796 

749 

737 

748 

694 

679 


MBL tas Rn302 


MSauiBark2%03. 

ogdenSffi, 


200 23329 S1% 93% *138 
■ 85 30077 Z?% 93% 

500 562097 117 116 *66 

TCO 130226 109% 110% *90 
76 92% 93% 


Pmzol 4 % 03 

SmdazQtoW2ffi 

BVI Ffetoce Tlj CE 2SD 

Sapporo 1% 00 40000 10S9.4 103% 104*2 

anttemo Bank 3% 04 — 300 iRnfio g^il gg% 44472 

Sat Afa nca 7% 06 £ 155 39 111% 112% +1675 

TfaTsatodc Ffttgs 51; 09 £ . 750 iflS 801, 8T»9 +11.72 

agfcMe. . prevtora dj/s ptae 
- Cmkr am neU mte a prtoo 


SnuuBHTI 


BOMJ ft Tho yw ld a the yoU id wtovlgn a* the Udptea: toe wraw* lamed to n mtoora a oevency watt. Cte agnOton m 

RSI* HUlBk Denamntod kt daSn treats adi— tt a n-Snaail Capon tew b nSntaton. SpraskMonn — - . 

Gcp wTte cw rae cac n a«rw te-roomi c41uuf nte (tSnMivHh Sabam mean nsd lor US detosa 

PWW WfWJI BOIto ra Pano rwatod h dotora iriaaa otfwwtaa hxteasad. Omr. la todtantosl ernous of bond pa arm agraBrel n Amxy & a 


pernhrn ar the aim rifean prtsa a aegamg Sn tea the band over the mewl racer* pa d the riiw m. 


t oon v eB Mi row s«ad m Issue rm i u/tou e no o n 


C Tte Snsndal Tknas Lid. 1096 Reprotecaoi in afteta or ta Dart ta my Item ml parnraa fl «4ni wntton casare. Ctoa ■ _ _ 

Or teraua SecttofcB Moriari Aeaaeudon. 


t 


M. 

at 


6 








V 


M«> * 



tftimas 


^ANCIALTTMES 


FRIDAY NOVEMBER 1 1996 


CURRENCIES AND MONEY 


Swiss franc declines on gold rumours 


markets report 


By-Graham Bowley 

■Hie Swiss franc fell sharply 
on the foreign exchanges 
yesterday a m id rumours 
ti3flt Swiss authorities 
are considering a suspension 
of banking secrecy laws to 
hdp find Nazi gold hidden in 

Swiss hanlrg 

The pound ended flat 
against most currencies after 
another day of volatile trad- 
ing over concerns that thfc 
week's interest rate increase 
might presage large Budget 
tax cuts. 

The Italian lira strength- 
ened after a Bank of Italy 
economic report suggested 
the economy was slowing 
but that interest rates were 
unlikely to be lowered. 

The lira was supported by 
rising expectations that Italy 
would be more likely to qual- 
ify for European monetary 
union. This followed the 
European Commission’s 
decision to give formal back- 
ing-yesterday to France’s' 


POUND SPOT FORWARD AGAINST THE FC 


controversial measures to 
reduce its budget deficit to 
Qualify for a rtfngfo currency- 
This makes it more likely 
that Italy would be able to 
meet the budget criteria for 
Emu, traders said. 

The dollar moved in nar- 
row ranges ahead of key 
employment data due today. 
Analysts said the dofiar-was 
vulnerable to any weaker* 
than -expected jobs numbers, 
since this would hit expecta- 
tions of a US interest rate 
rise 

The dollar closed in Lon- 
don ag ainst the D-Mark at 
DMi.513, compared with 
DM1.507 at the previous 
close. It finished at Yl 13,74 
against the yen, from Y113L9. 

The pound closed almost 


D-Mark 

and 

dollar at 

DM2.4641 and 51.6284. The 

■ Peered la Mere Yerik 

Oct 31 

-Utoat— 

-Pie*, dare — 

Eapot 

1.B26S 

14335 

1 mtti 

1.3233 

14325 

3 mtti 

T4233 

T43D0 

iyr 

14124 

141 » 


daring Change BSdfoflw 
mM-potnt on day oprMd 


Day's arid 
high low 


Europe 

Austria 

Belgium 

Denmark 

Finland . 

Franca 

Germany 

Greece 

Inland 

Krfy 

Luxembourg 

Netherlands 

Norway 

Portugal 

spam 

Sweden 

Switzerland 

UK 

Ecu 

SOFtf 


sterling trade-weighted 
exchange rate index closed 
fiat at 90.2. 

The French franc moved 
higher following the Euro- 
pean Commission’s 

ann n nrwwnwit This Was in 

spite of a five basis point cut 
to 3b20 per cent in the Bank 
of France’s intervention base 
rate. The franc was trading 
at about FFT2L3765 against 
the D-Mark at the end of the 
day in Paris, against 
FFr3.379 the previous day. 

■Rumours of a suspension 
of Swiss banking laws 
prompted a swift decline in 
the Swiss franc in late trad- 
ing yesterday. 

Mr Tony Norfield, treasury 
economist at ABN Amro in 

London, said: “If the secrecy 

laws are suspended then it 
opens up the risk that lots of 
people who traditionally use 
Swiss bank accounts are less 
■likely to put their money 
there.” This raised the pros- 
pect of a slowdown of Sows 
into the franc which would 
weaken the currency. 


Oo# month Tim months On* jmt Sank of 
Rf HPA RBI %PA Ran %PA Eng. mom 


-I 

:-r.- ast K 

; ;iaaqwy re£ - I:/'"' 

v f. ? s*' *•*' t:; 
tj8ir.4g yr • • :'j- • } 




He said this would play 
into the hands of the Swiss 
central bank since it wanted 
a weaker franc in order to 
ease pressure cm the Swiss 
economy. 

He said a potential Inves- 
tor flight from the Swiss 
franc could benefit European 
high yielding currencies 
such as the Italian lira. 

■ The dollar began the Euro- 
pean trading session weak 


bat recovered some ground 
later in the day . 

Mr Joe Prendergast. for- 
eign exchange strategist at 
Merrill Lynch in London, 
said there was still an upside 
bias to the dollar against the 
yen in spite of its correction 
of recent sessions. 

He said he expected 
today’s employment num- 
bers to show some recovery 
in activity from last month’s 
weak reading. But he said 
they were still likely to be 
subdued “which means little 
support for the dollar 
against the yen". .. 

Mr Norfield said a weaker- 

than -expected figure would 

probably boost the dollar in 
the short-run since it would 
prompt buying of US govern- 
ment bonds. But in the long* 


Oct 31 C S 

Cadi Bp 417444 ■ 43.7984 288700 - 2&S900 

tommy 252.731 - 252.936 15SAW - 155490 

ho 4695.40 - 4884.00 30004)0 - 3000.00 
tank OXSfiB - (L4S80 02601-02898 

Poland 45747 . 45502 2*100 - 28120 

Rusria 8880.74 - 880325 54S&00 - 546000 

UAE 54704 - 54842 34710 - 34740 


DOLLAR SPOT FORWARD AGAINST THE DOLLAR 


Ctoetag Change BftWoGar 
ima-poW on day apraad 


Dqr% mid 
Ntfi low 


Om month Three months On* y«ar j.p Morgan 
Rate %PA Ram %PA Rue %PA mam 


CSch} 174386 
(BFi) 50.7898 
(DKi) 9/4637 
(FM) 747B2 
0=3=0 84182 

( DM) 2X641 
(DO 387471 
(ffi) 14005 
(U 248942 
(LA) 50.7898 
(R) 2761 6 

(MO) 104814 
tEa) 248486 
(Pta) 207.580 
tSKrJ 10.6897 
(SFi) 24487 
B 

- 14844 

- 1.122400 


+0426 286 
+04726 446 
♦04205 087 
+04162 713 
+04087 153 
+04037 827 
+0436 862 
+04032 994 
-345 740 
+04725 448 
+0401 803 
-04129 772 
+0.163 954 
+0427 489 
-00012 789 
+04102 487 


485 174875 

346 504070 

676 04896 

871 74970 

211 84389 

654 24719 

280 389427 

Oil 14016 
105 247749 
348 504070 
628 2.7774 

856 104095 

239 248413 
672 206402 

004 10.7223 

507 24527 


174951 

34 

174356 

24 


- 

1044 

Areata 

(Soft) 

104475 

+04416 441 - 511 

104600 

104280 

104279 

24 

104876 

24 

10.3826 

2.4 

104.7 

504848 

34 

504998 

51 

494048 

51 

1064 

Balkan 

(Bft) 

31.1000 

+0.12 700- 100 

314100 

314420 

31.13 

24 

314026 

2.4 

30X825 

24 1054 

54437 

24 

94032 

24 

94242 

55 

1074 

Denmark 

(DKi) 

54116 

+04286 106 - 126 

54179 

54018 

54027 

14 

5.780 

14 

5.7026 

1.9 

106.7 

- 

- 

- 

- 

- 

- 

844 

Finland 

(FM) 

44316 

+04209 278-353 

44360 

44208 

44228 

24 

44041 

2 A 

4X216 

2.4 

844 

52992 

57 

84603 

24 

84818 

58 

1084 

Franc* 

JTf) 

5. 1082 

+00184 077-087 

5.1127 

54890 

54898 

24 

54819 

2.1 

5.0062 

24 1064 

2458 

34 

54452 

51 

24888 

51 

1084 

Germany 

(DM) 

14132 

+04069 127 - 136 

14150 

14103 

14103 

24 

14044 

24 

1X796 

24 

1074 

- 

- 

- 

- 

• 

- 

67.7 

Greece 

(DO 

237.700 

+0465 890 - 770 

238460 

236430 

238455 

-74 

241.825 

-04 

p+j-a w; 

-6.4 

67 X 

1 

04 

0499 

04 

04824 

04 

994 

kefand 

09 

14280 

-04081 270 - 290 

1.6380 

14285 

1.6275 

04 

14272 

02 

14243 

04 

. 

247342 

-14 

?*pn *i? 

-14 

248542 

-04 

77.1 

Italy 

W 

151645 

+14 580 - 710 

1517.63 

1511.40 

151942 

-24 

152345 

-24 

1539 

-14 

764 

504648 

34 


51 

494048 

51 

1084 

Luxembourg 

(LFr) 

31.1800 

+0.12 700-100 

314100 

314420 

31.13 

24 

314025 

2.4 

30X825 

24 1054 

27544 

51 

57394 

34 

50747 

51 

1064 

Motherlands 

CR> 

14850 

+04047 955 - 962 

1.7015 

1.6945 

14821 

2.7 

14841 

24 

14485 

24 

1054 

104688 

1 A 

104489 

14 

104438 

14 

804 

Norway 

ONKr) 

54752 

+00075 742-782 

84120 

64705 

64715 

0.7 

64858 

04 

84402 

04 

08.7 

245291 

-04 

249461 

-04 

- 

- 

954 

Portugal 

(Era) 

152470 

+047 820-020 

153.100 

152430 

153.175 

-14 

153X7 

-14 

154445 

-04 

964 

207245 

-14 

207475 

-04 

207475 

-04 

804 

Spain 

(P»a) 

127475 

+0425 450-500 

127.660 

127.090 

127465 

-1.7 

127415 

-IX 

12848 

-04 

794 

104885 

0.1 

104850 

0.1 

104735 

04 

904 

Sweden 

(SKr) 

84645 

+04151 595 - 885 

64738 

64535 

64617 

04 

64518 

04 

64045 

04 

894 

24421 

44 

50271 

4 A 

14604 

*A 

1094 

fTnillkanire ni 
uWIUnmiu 

(SFr) 

14587 

+04003 584 - 590 

14605 

14520 

14549 

3.7 

1447 

3.7 

14142 

34 1004 

- 

- 

. - 

- 

- 

- 

904 

UK 

(9 

14284 

-0404 280 - 288 

14340 

14241 

14274 

0.7 

14255 

0.7 

1.6144 

04 

894 

12825 

14 

1478 

50 

14566 

24 

- 

Ecu 

- 

14678 

-04037 675 - 881 

14688 

14662 

14082 

-14 

14723 

-IX 

14889 

-1.7 

• 


WORLD INTEREST RATES 


MONEY RATES 

October 31 Over 

nigra 


run it would weaken the dol- 
lar since it would make a US 
interest rate increase less 
likely. 

■ Mr Kenneth Clarke, UK 
chancellor, yesterday her- 
alded the pound’s strong 
rally since the summer as a 
sign of growing interna- 
tional confidence In the UK's 
long-term economic pros- 
pects. 

But currency markets yes- 
terday made a somewhat 
sceptical reappraisal of 
Wednesday’s quarter-point 
increase in interest rates to 6 
per cent The pound rallied 
immediately after the move. 
But it gyrated erratically 
yesterday as traders 
attempted to gauge whether 
the rate increase was a pre- 
emptive attack on inflation 
or whether it in fact meant 
Mr Clarke would now ease 
fiscal policy. 

• For the latest market 
update, ring FT Cityline on 
+44 990 209909 
To subscribe. caB +44 171 873 4378 


Belgium 
week ago 
France 
week ago 
Germany 
week ego 


One Three 
month note 


3u 3H 
3 j 32 
3i 34 

3i 34 


weak ago 

SS 

sc 

SS 

55 

Italy 

7* 


7u 

7JI 

weak ago 

7*1 

k 

71k 

r;- 

Ndharland* 

2’a 

3 

Si 

3 1 '* 

weak ago 

23 

3 

2S 

2S 

Bwteartand 

14a 

Ilk 

12 

IS 

weak ago 

ih 

14h 

13 

Ii* 

US 

5Vk 

B'li 

sy 

sy 

week ago 

Si 

5'j 

5H> 


Japan 

1L. 

if 

i, 

u 

3 

week ago 

a 

3 

i. 


■ 3 LIBOR FT Lon 

don 




interbank Fbdng 


SH 

S'i 

58 

week ago 

- 

5h 

Si- 

SH 

US Dallr CDs 


648 

507 

5.13 

week ago 

_ 

5.03 

5.10 

5.19 

ECU Linked Da 


4& 

4,1 

4& 

week ago 

_ 



4>V 

SDR Lfafced Da 

_ 

St 

*>: 

3S 

week bqo 

- 

St 

Sri 

31 


Dim. Repo 

rate 

240 . - 

240 

- 4.75 

- 4.75 

240 340 

240 3.00 

- 645 

- 645 

740 648 

7.50 B.38 

340 340 

3.00 340 
140 

1.00 
5.00 
500 
040 
0.50 


S LSOR Intvttmk tiling ijm am oflenxl rates la SlOm Quoted Vo the market Ov tour 
wte u f iie ranks ■ Hem cacti anrVtng day The Banka are. Bentara I run. Ban* of Tokyo 
MtublaM. Barclays and National WKimnsw. 

Md raw* ms shown tor Itw dumasuc Ur-nay FM*". USS CD*. ECU 4 SDR Unfed DrpaMa pa). 

EURO CURRENCY INTEREST RATES 

Oct 31 Short 7 days One Three Six On* 

term notice month montha montha year 

Belgian Franc 3*a - 3* - 2» 3* - 3 3& - 3ft 3,1 - 3ft 3* - 3ft 

Oaneh Krone 3ft . 3I4 3ft - 3ft 3ft - 3ij 3(1 - 3,1 3|i - 3ft 3|J - 3k 

D-Mark 3,1 ■ 2»J 3l* - 3 31* 3 3,1 - 3,1 3,1 - 3,1 3,1 ■ 3,1 

Dutch Gutter 3,1 - 2(1 3-2% 2*41 - 3ft - 2il 3ft - 3ft 34a ■ 3* 

Franch Franc 3% - 3I4 31* - 3L, 3ft - 3,1 3,1 -3ft 3ft - 311 30 - 3A 

Portuguese Esc. 7l» - 7,1 7,1 - 6(2 7 - fig CtJ - 6j* 6(1 - 8ft 4) - «U 

Sparest) Peseta 7 - 6* 7-67* &SJ - 61 6% - 61 61-6% 6fi - 0ft 

Startng 6% - 6 6,1 • 6,1 BA - 6,1 6,1 O 1 * 63* - 6,1 B*« - 6,1 

Sun Franc 1*» - H 2 i(i - l£ ifi - 1,1 i« - Hi HI - 1ft HI - 111 

Can. Dollar 3H - 3,1 3ft - 3,1 3ft -3k 3|| - 3* 3,1 - 3,1 31 - 3>* 

US COCar 5ft - SX 5,1 - 5,1 5% - 5,1 5b - 5b 51! - 5ft 5ft • 5ft 

Itafcan Lae 7ft - 7fl 7ft - 7ft 7(i -7ft 7** - 7lj 7ft - 7,1 7* - 5ft 

Van ft - A h - B B - B ft - ft la - ii ft - B 

Aaian SSrtg 33* - 3** 33, -31 3b - 3>+ 33* - 31 3,1 - 3,1 3>2 - 33* 

Short term rata* are call lor ttrs US Dollar and Van. Ottawa l«o day*' nowca 
■ THREE MONTH PfflOR FUTURE* (MATIFIPaiti Intarbank offered rat* (FFr 5m) 


33,-211 3^.-2?J 
3U-3U 3B-3JI 3 
3ft - 2« 3*a - 3 

3,1 - 2(1 3-2% 2 

33* - 3I4 3% - 31 3 
7l* - 7ft 7ft - 6lJ 
7-61 7-67* E 

64 - 6 6,1 • 6,1 E 

1*8 - 1*2 1ft - 1ft 1 

34 - 3ft 313 - 3,1 3 
5(2 - 5ft 5ft -5.1 5 
7ft - 7ft 7il - 7ft 7 

ft - ft h - B 
34-34 34-34 3 

re call lor ms US Dollar an 

(TH POOR FUTURES 


Argentina (Peac^ 14202 -04042 277 - 286 14340 1.6246 - - - - 

BrazB (RS) 1.6730 -04044 724 - 736 14788 14694 - - - - - 

Canada (C$) 2.1638 -04056 628 - 847 2.1909 2.1775 2.1787 24 2.1678 24 2.1088 34 884 

Mamco (New Paso) 13.1240 +0.115 054-444 13.1502 134172 - - - - - 

USA j$) 14284 -0.004 280 - 288 14340 14241 14274 CL7 14255 0.7 1.6144 04 97.1 

PadHc/MkkBa Ematf Africa 


Argentina (Paeo) 04999 -04001 998 

Braal (RSJ 14274 -04002 273 ' 

Canada (CS) 14411 -04002 408 - 

Mexico (New Paao} 84600 +040 500 

USA (9 


999 04999 04998 

275 14278 14271 


Australia 

(AS) 

24534 

-04081 522 - 545 

24831 

24484 

24647 

-04 

24554 

-OX 

2455 

-0.1 

94.1 

Hong Kong - 

(HKD 

124913 

-043 874 - 952 

12.6339 


12484 

0.7 

124701 

0.7 

124056 

07 

- 

India 

<Rs) 

574711 

-04745 940 -482 

564860 

574600 

- • 

- 

- 

- 

- 

- 

- 

Israel 

(Shk) 

54320 

-04008 240-400 

54410 

54001 

re 

. 

- 

- 

- 

- 

- 

Japan 

(Y) 

185414 

-0478 067 - 341 

106530 

184.180 

184424 

54 

132X64 

54 

174X34 

54 

1274 

Malaysia 

(MD 

4.1144 

-04114 128 - 160 

4.1361 

44995 

- 

re 

- 

- 

- 

- 

- 

New Zealand 

(NZD 

24021 

-041 OB 004 - 038 

24151 

24975 

24068 

-35 

24182 

-24 

2439 

-1.8 

1114 


PhHppines (Praoj 42.7944 -0.112 187 - 700 424760 42.7182 

Saud Arabia (SR) 6.1073 -04148 055-091 6.1262 64915 

Stngepore (SS) 24944 -0404 932 - B55 24017 24901 

South Africa (T9 7.6421 -04981 381 -480 7.7824 7.6354 

South Korea (Won) 1346.77 -9.14 603-751 135642 134342 

Taiwan (15) 44446Z -0.1088 026 - 897 444677 44.7602 

Thailand (Bt) 414324 -04863 140-507 414860 414390 


AustreBa (AS) 14610 -04019 606 

Hong Kong (l-KS) 74323 +04003 318 

Indta (Hs) 354000 -0482 000 

Israel {SN4 34744 +04075 703 

Japan (V) 113.740 -0.14 690 

Malaysia (MS) 24267 -04006 263 

NewZMand (NZS) 1.4137 -04032 130 

PhBppktw (Paso) 262800 -0405 400 

Saucfi Arabia (SR) 3.7505 - 503 


- 785 32788 32607 


-200 264200 282400 


Saud Arabia (SR) 3.7505 

Sfrigapore (SS) 1^090 +0401 066 

South Africa (R) 44930 -04475 905 

South Korea [Wor^ 827450 -3.6 800 

Ttlwan (TQ 274400 - 200 

ThaBand (Bt) 254050 +0407 000 

T son me per S fonOol 30. OUUflar awda Ki I 
aaad le the market but ere fenpled By awiaM In) 
sa Bwm mngt 1090-100. 


t Rales tor Oct 30 OttWtor spread* b 81* Pored Spot abtodwworty the tat Hass doM piacaa. Fcreaid rate* me not «Botly quotsd totfw mariat bw 
ara invCad By craant kWrew mob. SlerfW krxk* cWcuWtnd by tht Hark a I B^tond Bmm awoua 1B0O - 100. Ma isbaaad ifflBS. EBd Otar and 
Mtt+daa in both iWa and kw Dob Spot tatWs darired kern THE WkMEUTBlS CL08MS SPOT RATES. Soma nakaa are lOundad by Bw F.T. 


14387 

21 

14337 

24 

15062 

24 

885 

8.178 

-174 

8X445 

-19.1 

9505 

-15X 

. 

- 

- 

- 

- 

- 

■ 

974 

14625 

-IX 

14644 

-1.1 

14699 

-07 

964 

7.7322 

04 

7.7328 

04 

7.7438 

-0.1 

- 

35415 

-74 

38475 

-7.6 

- 

- 

- 

113465 

5.0 

11248 

54 

10848 

64 1274 

24295 

-IX 

24349 

-15 

25682 

-14 

- 

1X192 

-4.7 

1X235 

-28 

1X55 

-44 

- 

3.7508 

-0.1 

3.7512 

-0.1 

3.7531 

-0.1 

. 

1X068 

14 

1X022 

14 

1581 

24 

. 

47337 

-10X 

44087 

-04 

5.1235 

-84 

- 



Open 

Sen price Change 

High 

Law 

Eat vol Open M. 

Dec 

96.46 

96X7 

+0 03 

96.49 

96 45 

19.097 

51.842 

Mar 

96.40 

96.40 

+0.02 

96.43 

96.38 

13,094 

51597 

Jun 

96.33 

96.33 

+0.01 

9656 

96 33 

4.558 

29.705 

■ THRU MOWTH EUROMARK FUTUflKS (UFTEV DM 1m prenta of 100% 


Open 

Sett price Change 

High 

Low 

Est vol 

Open mL 

Dec 

9679 

96.79 

- 

96.80 

96 79 

17068 

216711 

Mre 

96.78 

96.77 

+0.01 

96.79 

96 76 

23196 

191237 

Jtn 

96.59 

96.59 

+0.01 

96.62 

96.57 

23690 

187210 

Sep 

9657 

9656 

- 

96X0 

96.34 

27083 

153499 

■ THREE HO NTH EUROURA FUTURES (LIFFEl* LlOOOm points Of 100% 


Open 

Sett price Change 

High 

LOW 

Eat vol 

Open m. 

Dec 

92.61 

9248 

+0.08 

82.67 

82-80 

14S61 

71027 

Mar 

93.13 

93.18 

+047 

93.23 

93.12 

14005 

54704 

Jun 

93.40 

93.42 

+0.07 

93.45 

93 39 

3215 

32894 

Sap 

93.44 

83.47 

+0.07 

93.51 

93X4 

2636 

22778 


L taOltnt EURO SWISS raARCWTURBSftJFPE)SFrtwpol«aoSTOini, 


-300 830400 826.700 - - 

-600 27.5700 274200 274401 04 274403 

- 100 254510 254960 25495 -42 252625 

it* Oder Spot table Aow only the tat ihree dsdrrol ptao 
lareet rates. UK. htand 3 ECU ara i*aMad In US cwisncy. 


04 ... 

-4.0 264 -34 - 

re. Forward non we no, dracUy 
OP. Morgan nominal baflesa Oct 



Open 

Sett price Change 

High 

LOW 

Est vol Open kit 

Dee 

98.12 

98.18 

+0.01 

98.16 

98-08 

4327 

30077 

Mar 

96.11 

98.14 

+0.01 

98.17 

98.06 

5818 

3022B 

Jiai 

9749 

B7.95 

+0.01 

9748 

97.88 

1432 

15684 

Sap 

97.67 

07.72 

~ 

97.76 

87.87 

358 

5266 

■ THREE MONTH EUROYEN FUTURES (UFFE) YlOOm paints of 100% 


Open 

Sett price Change 

High 

Lew 

Ess. vol 

Open kit. 

Dee 

99.45 

99X5 

- 

99.45 

99X5 

80 

0 

Mar 

9959 

8959 

-0.01 

8959 

99.39 

50 

0 

Jin 

99-28 

9958 

-0.02 

9948 

994B 

145 

0 

■ THREE MONTH ECU FUTURES (UFFE) Eeulm points of 100% 



Open 

Sett price 

Change 

High 

Low 

Est. vol 

Open inL 

Dec 

9540 

9542 

+0.03 

9543 

9580 

1232 

7913 

Mar 

9544 

95.82 

+042 

9544 

9542 

285 

5307 

Jun 

95.79 

95.78 

+0.01 

95.80 

95.79 

205 

3641 

Sap 

9648 

95.66 

- 

6548 

95.65 

439 

2633 


* UFFE futures also tredao on APT 


CROSS RATES AND DERIVATIVES 


EXCHANGE CROSS RATES 

Oct 31 , BFf DKr FFr 


Bdfriuni . 
Dwtmaric 
Banoa . 
Germany 
lila nd - 
itmy 


Norway 

Portugal 

Spain 

Samian 

Saittarland 

UK 

Canada 

us 

Japan ' 

Ecu 

DonUl Kroner. 


(BFr) 100. 1843 1848 44 J 

(OKI) 5847 10 5789 2.« 

(Ffi) 51.08 1148 10 2JK 

(DM) 20.61 3441 3-378 1 

(IE) 40.79 9.464 5318 2.41 

(L) 2.057 0483 0437 511 
fpi 1539 5427 3412 041 

(NKl) 4593 8.118 5013 24) 
{&) 2049 5799 5339 0.91 

(Pin) 24,47 4458 4407 1.11 

(SKr) 4741 8.853 7.781 24( 

(SFr) 24.78 4417 4.058 141 

(E) 50.79 9464 531B 2M 

(CS) 2526 4.333 5B09 1.1! 

3140 5813 4109 14‘ 

(Y) 27,42 5.110 4.481-14! 

39.56 7471 547B 14 

Franch Fnmo. Norwagton Kroner, and tarad 

FtfTUMS (IMM) DM 125400 per DM 


1469 
1457 
1402 
5406 
1 •• 
0041 

0462 

0463 
0401 
0482 
0435 
0488 
1400 
0458 
0414 
0440- 
0.779 

Kronor par ■ 


R 

NKr 

Ea 

5X38 

20.44 

4804 

2.918 

1047 

2834 

3521 

12X8 

2994 

1.121 

4413 

101.1 

2.762 

10.38 • 

248.1 

0.112 

0X20 

1049 

1 

3.756 

90.19 

2461 

10 

240.0 

1.109 

4.167 

100. 

1530 

5400 

1204 

2.584 

9.710 

2334 

1547 

5483 

1214 

2.782 

1058 

249.1 

1465 

4.753 

114.1 

1487 

8578 

153.0 

1X81 

5.605 

1344 


2.151 5084 

m Franc, Yen. Eat 


Pta 

SKr 

SFk 

C 

CS 

s 

Y 

Ecu 

408.7 

2145 

4.036 

1489 

4500 

3405 

3845 

2528 

219.4 . 

1150 

2.168 

1457 

2508 

1.720 

195.7 

1557 

2494 

1245 

2X65 

1402 

2.626 

1457 

9»« 

1544 

8445 

4538 

0532 

0X06 

0586 

0561 

75.16 

0521 

2074 

10.68 

2.050 

1400 

2.184 

1528 

1854 

1484 

8X08 

0X33 

0483 

0441 

aces 

0466 

7501 

0452 

76.16 

3570 

0.742 

0.362 

a79i 

0586 

6745 

0X85 

2004 

1050 

1475 

0463 

2.104 

1588 

178X 

1437 

8354 

4491 

0523 

0X01 

0577 

0.664 

7455 

0.515 

100. 

5.149 

0487 

0X82 

1452 

0.7B4 

8941 

0518 

1944 

10 

1418 

0435 

2443 

1523 

1732 

1401 

1015 

5415 

1 

0X88 

1485 

0.794 

9054 

0.626 

2075 

1049 

2.050 

1 

2.184 

1528 

1854 

1484 

9545 

4595 

0438 

0X58 

1 

0.745 

8450 

0588 

127.5 

6588. 

1569 

0414 

1542 

1 

1135 

0.7B9 

112.1 

6.772 

1.107 

0540 

1.178 

0579 

100. 

0693 

181.7 

6526 

1597 

0.779 

1.701 

1468 

1444 

1 


Union wihmI 

m 24 HRS _ 

Contact Ehtncan Dtum H 

Hfl j 0171 329 3030 Faxi 0171 329 0545 ^J. 
L imi ten lntgraet ; http^/www.tg]ctm:com/nugjtatt/cair 


FUTURES 
OPTIONS 
& FOREX 

rarVATE CLIENTS 
WELCOME 


» V7j .1 rm 4 A *4 r j l — ^,1, ,T ' J A , f , y ^ r J 

1 1' I'J i'J m L.J.TJ.-3 


38 DOVER STREET, LONDON VOX 3RB 
TEL: 0171 629 J 133 FAX; 0J71 495 0022 



Open 

Laiast 

Change High 

Low 

Est vol 

Open InL 


Open 

Latere 

Change 


08637 

05822 

-00017 05637 

OB619 

25.116 

57541 

Dec 

08824 

08832 

+04002 


- 0.6679 

05662 

-04015 -05679 

05658 

238 

3,743 

Mar 

05963 

- 05843 

— 

Jun 


0.6700 

-04016 

08700 

3 

2530 

Jun 

09075 

09069 

+00012 


1 FRANC FUTURES (IMM) SFr 125.000 pra SFr 


08011 

08003 

-04003 

05017 

07976 

1655* 

42538 

08073 

05074 

' -04004 

08074 

05074 

162 

2.707 


05140 

-00011 

- 

05140 

B 

806 


INTEREST RATES 


(IMM) Yen 12.5 per Yen 100 


Change Hgh Low Eat. vol Open InL 
+04002 04882 04810 18403 76489 
04963 04943 622 5122 


■ sratuNQ runmn qmm) 8 82400 pare 


Dec 1.6324 14250 -04072 14328 1.6228 17414 07443 

Mar 14240 1.6230 -04068 14240 14220 374 665 

Jin - 1.6190 -04078 - 14180 100 162 

ERRS EUROPEAN CURRENCY UNIT RATES 


Affdrc!.ib:e 'eal time L-qui-re?.. futures, options ancf noivs. 

Market-Eye 

FREEPHONE 0800 321 321 FAX 0171 398 1001 


liLkLfil :< J 1 i- f j n ■ . 1 n 4 1 IrAl 


FOA COMPLETE REAL-TIME DAIA OF THE US 
AND EUROPEAN EXCHANGES 



KNEHT-RIDDER’S FUTURES MARKET 0ATAKIT FROM $570 

ri | j ||| MMIU fM d ta| pH* niibi O DataaUDbMrgraaN hd. *■ 


Interbank Stortng 
Stflrfng CDS 
Treaouiy B«a 
Bank BOt 


81; 3 8,1 -6 6ft - 6 8ft - 51 - 6j» 6ft - 6ft 

8ft - B 6»# - 8ft Bft - 61* 6ft - BU 
- KfS-51? 58-511 - - - 

an -5% 8-511 eft-eft - , 


Local authority depo. Bi* - 6 6 - 5% 6ft - 6 - 6ft 6ft - 6ft 6ft - M 

O&wxrit Market deps 6l» - 6># - 8 - - . 

uK dearing bank base landing rata 6 per cent from. October 35 19B6_ 

Up to 1 1-3 3-6 6-9 9-12 

month month montha montha montha 



Oct 91 

Ecu can. 
rates 

Rata 

against Ecu 

Change 
on day 

Ireland 

0792214 

0,781208 

+0.001824 

I HRMIII 

5.80661 

5.76963 

+0.00625 

Portugal 

195.792 

194538 

+0067 

Spare* 

162X93 

162542 

-042 

PMfftwtands 

2.15214 

2-15989 

+000063 

Belgium 

395060 

99.6941 

+04382 

Oermany. 

141007 

142681 

+040174 

Austria 

13X383 

135563 

+00123 

Franca 

040606 

650246 

-040881 

DaremreV. 748580 

NON ERM MEMBERS 

759638 

-040148 

Orea o* 

292567 

302.667 

+0472 

Italy 

2106.15 

192953 

-7.1 

UK 

0786652 

0782167 

+0400921 

PWcmBadianareaialerEacapoaBradiaogadBnoiaaaa 
botamn n» renadai ew panwo^ cMerem breweai riw at 


245 

9 

2.17 

4 

241 

3 


nyH*IMfaMMlMMi*a*i O ranreto M d tafFi h a ta Matt 

Mi Mtar MU. 71 RMlttMi LaMM EHT 1KM+44 «17l Stt4M3 


\\ ANT TO KNOW A SI C RI 1 ? 



This notice is issued in compliance with the requirements of London 
Stock Exchange Limited (*the London Stock Exchange*), it does not 
constitute an offer or Invitation to any person to subscribe for or pur- 
chase any securities. Application has been made to the London Stock 
Exchange for the whole of the issued ordinary share capital of Haynes 
PubSahfng Group Public Limited Company which is currently traded on 
the Unlisted Securities Market (Le. excluding the “A* Ordinary Shares) to 
be admitted to the Official List- It is expected that listing win become 
effective and dealings in the ordinary shares of 20p each of the 
Company wfK commence on 7 November 1996. 

HAYNES PUBLISHING GROUP 

PUBLIC UMITED COMPANY 
(Incorporated and rogssiered In England undor ttn Corrtpanias Acta 
1948 to 1989 with registered number 659701) 

Introduction to the Official List 
by 

SINGER AND FRIEDLANDER UMITED 

of the whole of the issued ordinary share capital of 
Haynes Publishing Group Public Limited Company 


SHARE CAPITAL 

Authorised Issued and futty paid 

Number Amount Number Amount 

8,750,000 £1.750.000 ordinary shares of 6,645,355 £1 ,329.071 

20 p each 


Copies of the Exempt Listing Document published by the Company In 
connection with the introduction to the Official List of the London Stock 
Exchange may be obtained during normal business hours on any week- 
day (Saturdays and public holidays excepted), from the data of this 
announcement up to and Inducting 2 November 1996. from the 
Company Announcements Office of the London Stock Exchange, 
London Stock Exchange Tower. Cope! Court Entrance, off Bartholomew 
Lane, London EC2N 1HP (by oodection only) and from the date of this 
announcement up to and including 13 November 1996 from: 


SHARES 


-TAX FREE 

0171 896 0011 ! 



Hayna* Pubtfshlng Croup PJ—C. 

Sparidonl 

Nr Yeovil 

Somerset 

BA22 7JJ 

1 November 1996 


Singer & Eriedtandw Limited 
21 New Street 
Bishopagate 
London 
EC2M4HR 
Regulatacl by the 
Securities A Futures Authorities Ltd 


Strike 

Price 

NOV 

- CALLS “ 
Dec 

Jan 

Nov 

— PUTS - 
Dec 

Jan 

1580 

545 

. 559 

558 

- 

016 

0X2 

1580 

_ 

4.52 

- 

- 

050 

061 

1500 

355 

3.70 

442 

007 

0X7 

055 

1510 

251 

246 

353 

042 

073 

1.16 

1570 

0X5 

250 

2.71 

0X6 

147 

154 


Quality Servicei 
Low Kates 


$-<25 


0900-262-472 cuu 

Ctnmv: 4I304U1M 

Fiance 0KK-9OC343 
Rrc D1 71-347-0471 


NEWisriSsr 

•wwUBrioreco.uk 

REAL'TSC STOCKS, CURRENCIES. BONDS. 

DBBVWnVE8. rtws _- Llr j. , .. 

Ht *44 (0)1714054511 TEN FORE™ 


Previous d*yt* voL CM* 6413 Pita 0430 . taav. dm/* open kit. Cal* 142420 Pul* 197413 


6.00 
6.73 
840 Strike 
575 Rice 
840 0825 

640 9668 


Ub FT GUIDE to WORLD CURRENCIES, pobbted h hl/alkfs 

mpvraad eovaim over 200 renew**, it low andUrie hf dUSag Ae bBoakg 
tenkcr tea Ibetajjnd erbraftet rf joarfn mddac. MM 437 BU. 
C&mc deled at 39pUbi chop «cred49pMa aril otter Hare. Rr wriee 

oitikfeiteUK p i rmB i rfcp b n ra+44]71 S?34TBfnr(la^raayfiMlag u Mi u iML 


If you would like to advertise, or require any 
further information, please contact 
Jeremy Nelson 
Tel; 0171-873-3447 Fax; 0171-S73-20S2 


Your ‘one stop' Brokerage connection 

to the world's 

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"W 7 Barone 



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+44 (0) 171 382 9429 



















26 


FINANCIAL TIMES FRfDAY NOVEMBER 1 1996 


★ 

COMMODITIES AND AGRICULTURE 


Sumitomo copper affair prompts watchdog summit 


By Laurie Morse in Chicago 

The world's three most powerful 
commodity futures market watch- 
dogs have organised a s ummi t to 
discuss special concerns about 
global commodity market regula- 
tion in the wake of the Sumitomo 

copper scandal. 

Officials from IS countries, 
including China, have been 
Invited to attend the conference. 


to be held In London at the end of 
November. They will examine 
ways of avoiding manipulation of 
physical markets for internation- 
ally-traded commodities such as 
copper, oil and sugar. 

Many of the countries invited, 
including several in Europe, are 
considering the introduction of 
commodity futures contracts. One 
regulatory official said the prolif- 
eration of new physicals markets 


made the summit “a unique 
opportunity for officials from 
jurisdictions that have fully-devel- 
oped commodity markets to share 
their experience with officials 
who are just beginning to deal 
with physical commodities". 

The UK's Securities and Invest- 
ments Board, Japan's Ministry of 
Trade and Industry CMiti) and the 
Commodity Futures Trading Com- 
mission of the US are sponsoring 


the meeting. While much work 
has been done on cross-border 
co-operation by regulators for the 
fast-growing arena of financial 
derivatives, it Is rare for regula- 
tors to confer specifically on com- 
modities market oversight. 

M s Br ooksely Bora, who heads 
the CFTC. said that the examina- 
tion could be overdue. While 
international commodities con- 
tracts have been traded for centu- 


ries, there were now greater 
opportunities for manipulation of 
the markets. 

“Better global communications, 
and the increased ability of mar- 
ket participants to move quickly 
from jurisdiction to jurisdiction 
and to trade simultaneously from 
around the globe have created 
greater global opportunities for 
commodity futures market manip- 
ulation.'’ she said. 


Issues of contract design and 
availability and transparency 
of deliverable supplies are 
expected to top the agenda for the 
meeting. 

The Sumitomo affair demon- 
strated the evolution of markets. 
Mr Yasuhlro Hamanaka. Sumi- 
tomo’s chief metals trader, ran up 
huge losses In unauthorised cop- 
per trades, casting the trading 
house an estimated $ 2 . 6 bn. 


Brazil’s coffee industry 
gains influential voice 


By Jonathan Wheatley 
in Sao Paulo 

Brazil's new coffee policy 
council will nil a void in 
policy-making and allow the 
development of coherent pol- 
icies for the first time since 
1990. industry observers say. 

The CDPC, created by 
presidential decree on Tues- 
day. gives the Industry some 
influence over policy-making 
- something it has long 
demanded - and should help 
end years of incoherence 
over market policy. 

The government hopes the 
CDPC will help raise produc- 
tion from about 23m 60kg 
bags a year to between 30m 
and 35m bags a year over the 
next decade. 

The council, comprising 
six government and six pri- 
vate-sector members, is the 
first policy body set up since 
1990 when the Brazilian Cof- 
fee Institute was swept away 
in a wave of restructuring 


under Mr Fernando Collor. 
then president 

“What's really important 
Is that the council gives the 
industry and government a 
united voice," says Mr Law- 
rence Eagles, a coffee ana- 
lyst at GNI Research In Rio 
de Janeiro. “It will make 
Brazil stronger and more 
able to reflect its weight in 
the world market Up to now 
there has been an embar- 
rassing lack of policy and 
Brazil's delegation to the 
[Association of Coffee Produ- 
cing Countries] has been 
unable to implement inter- 
national agreements." 

The remit of the CDPC is 
to co-ordinate coffee auc- 
tions to balance supply and 
demand on domestic and 
export markets: determine 
policy for warehousing and 
sale of the 4.2m bags held by 
the government and 9~2m 
bags held by a coffee devel- 
opment fund, Funcafc; set 
Funcafe's budget (the fund 


controls 5847m. including 
$ 620 m committed to invest- 
ments in production!: co-or- 
dinate links between govern- 
ment, the private sector and 
international bodies; 
approve crop plans and 
mechanisms for crop esti- 
mates; and co-ordinate agri- 
cultural and market 
research. 

The council will meet 
every two months under the 
chairmanship of Mr Fran- 
cisco Dornelles. the trade 
and industry minis ter, who 
will have a casting vote. Mr 
Dornelles retains the right to 
take unilateral policy deci- 
sions, although observers 
say he is unlikely to do so. 

Mr Francisco Ourlque, a 
coffee broker who helped 
develop the council, said it 
would help the industry 
meet demand for between 
25m and 27m bags during 
1996-97. Estimated output for 
the year is about 1.5m bags 
short of that target. 



Tefcwti Colour Ltaary 

CDPC should help Brazil meet future production targets 


Prices slip on Liffe despite continuing tightness of supplies 


Coffee prices eased yesterday after a 
choppy week of trading, but ana- 
lysts say supplies remain tight and 
predict that continued strong buy- 
ing interest from US and European 
roasters could push the market 
higher again over the longer term, 
Deborah Hargreaves writes. 

January coffee futures prices lost 
$7 a tonne on the London Interna- 
tional Financial Futures and 


Options Exchange to SI, 380, with 
New York futures mixed in light 
trading. 

GNI, the London brokers, said 
concerns over a possible delay to 
the Vietnamese coffee harvest 
because of heavy rains could lend 
some support to prices. 

“The supply situation remains 
tight and I don't expect it to ease 
before December," said Ms Jody 


Ganes, soft commodities analyst at 
Merrill Lynch in New York. 

Nevertheless, African producers, 
who are holding their annual meet- 
ing on November 17, said they 
remained concerned about low cof- 
fee prices in spite of an agreement 
in place to limi t exports. 

Meanwhile, Mr Celsius Lodder. 
head of the Internationa) Coffee 
Organisation, the producers and 


consumers body, predicted sharp 
growth in risk management Instru- 
ments in the market which would 
have a key influence on prices. 

Speaking in Bogota, he said the 
move among consumers to carry 
lower stocks would make it more 
important for exporters, traders and 
processors to resort to sophisticated 
financial mechanisms to offset price 
volatility. 


New challenge 
for US wheat 


MARKETS REPORT 


By Laurie Morse In Chicago 
and Deborah Hargreaves 
in London 

US wheat futures prices 
continued their slide yester- 
day, as traders anticipated 
ample new supplies from 
southern hemisphere har- 
vests and fears about the 
karnal bunt fungus 
re-emerged. 

Wheat prices for December 
delivery tumbled 8 cents, to 
53.73 a bushel in mid-morn- 
ing trading at the Chicago 
Board of Trade - a 40 per 
cent drop from the contract 
high and the lowest price the 
contract has reached in 17 
months. 

Wheat contracts for deliv- 
ery later in 1997, closer to 
the next US wheat harvest, 
established all-time lows. 

“People are concerned 
about big harvests in Argen- 
tina and Australia, and are 
also worried that the US and 
[European Union] will 
resume their wheat subsidy 
battle," said Mr Jerry Gidel. 
of Dean Witter Reynolds. 

Traders said the market 
continued to be hit by 
reports of wheat exports 
being rejected due to karnal 
bunt and other funguses. 

Maize futures prices also 
tumbled in Chicago. Traders 
said the market expected the 
US Department of Agricul- 
ture to boost its US maize 


production estimate, cur- 
rently at 9.01bn bushels, in 
its crop report, due to be 
published on November 12. 
December maize was trading 
at $3.67 at midday, down 3 
cents a bushel and its lowest 
level since August 1995. 

Crude oil prices slipped in 
late London trading follow- 
ing the announcement of a 
Kurdish ceasefire with Iraq. 
Traders interpreted this as 
bearish news for the oil mar- 
ket as it could bring Iraqi oil 
back to the market sooner. 

North Sea Brent crude for 
December delivery lost 
17 cents, dropping to $23.40 a 
barrel. The market had been 
much higher at $23.92 earlier 
in the day. December fixtures 
at the New York Mercantile 
Exchange broke through a 
key support level of $23.85 a 
barreL 

The market had been 
stronger in early trading on 
the back of a rise in heating 
oil prices with a cold snap 
forecast for the north-east- 
era part of the US. where 
many households use oil for 
heating. The price slipped 
back in later trading to 
hover around its previous 
dose of 68.86 cents a gallon. 

December white sugar 
futures on Liffe lost almost 
$3 a tonne to tumble through 
a key support point at $310 a 
tonne. Traders said the mar- 
ket was looking extremely 
weak as prices continued 
their “bear" run. 


Singapore 

launches 

rubber 

reforms 

By James Kynge 
in Kuala Lumpur 

The Singapore Commodity 
Exchange launches changes 

in Its main rubber contract 
today in an attempt to boost 
volume in a market which 
has been In the doldrums for 
weeks. Sicom hopes the 
reforms will international- 
ise trading and maintain its 
position as south-east Asia's 
premier exchange. 

The main reform is the 
launch of an “FOB" - free 
cm board - futures contract 
which will not demand the 
rigorous testing of rubber 
required under the current 
"award” contract. 

The new contract will be 
denominated in US dollars 
as opposed to Singapore dol- 
lars. Because the physical 
trade is conducted in US dol- 
lars, this should eliminate 
currency risk and make it 
easier to hedge - reducing 
risk by taking a position 
which offsets existing expo- 
sure to market rate changes. 

Rubber will no longer 
have to be shipped to 
approved Singapore ware- 
houses or undergo the man- 
datory tests of the award 
system. Singapore ware- 
houses are often more 
expensive thaw others in the 
region and the tests, which 
involve 20 different inspec- 
tions, tend to prolong ware- 
housing time. 

Singapore is keenly aware 
that it must reform ahead of 
possible competition from 
Indonesia - which some 
analysts say may start trad- 
ing rubber futures by the 
middle of next year. 

The TSR20 (FOB) contract 
will be for the October/ 
December 1997 contract 
months. 

The TSR20 (award) con- 
tracts will continue to be 
traded until the July/Sep- 
tember 1997 contract 
months. 


COMMODITIES PRICES 


BASE METALS 


Precious Metals continued GRAINS AND OIL SEEDS SOFTS 


MEAT AND LIVESTOCK 


LONDON METAL EXCHANGE 

(Prices from Amalgamated Metal Trading} 

■ ALU MOIIU M, 89.7 purity (S per lonne) 



Grail 

3 fifths 

Close 

1416-7 

1443-4 

Previous 

1395-96 

1423-24 

High/low 


1455/1429 

AM Official 

1415-6 

1442-3 

Kerb close 


1436-7 

Open ml 

231.014 


Total duty tunowr 

66.231 


■ ALUMINIUM ALLOY (S par tonne) 

Close 

1262-7 

1288-90 

Previous 

1255-65 

1280-90 

Wgh/tow 


1293/1287 

AM Official 

1260-65 

1287-90 

Kerb close 


1285-90 

Open irit 

6.387 


Tola* daily turnover 

705 


■ LEAD CS per tonne) 


Close 

754.5-5.5 

756-7 

Previous 

733.5-4.5 

740-1 

HtgMaw 


758/747 

AM Official 

750-2 

756-7 

Kerb dose 


752-3 

Open Irrt. 

40,323 


Total dsty turnover 

9.984 


■ NICKEL (5 per too no) 


Close 

7230-7240 

7340-15 

Previous 

7220-30 

7330-35 

Higtvlow 


7415/7330 

AM Official 

7230-40 

7340-45 

Kerb dose 


7330-35 

Open ML 

46,138 


Total cUnly turnover 

13,154 


■ TIN (S per lonne) 



Close 

5915-25 

5980-90 

Previous 

5915-25 

5980-90 

HigtYkNv 

5950/5944 

6010/5980 

AM Official 

5945-50 

6000-05 

Kerb close 


5985-90 

Open mi. 

15.328 


Total o.hm remover 

2.700 


ifi 

I 

1 

! 

■ 

per tonne) 

Close 

1046-7 

1066-7 

Previous, 

1023 5-24.5 

1046-47 

High-low 


1070/1057 

AM Official 

1043-5 5 

1066 5-7.0 

Kerb close 


1066-67 

Open ini. 

77.028 


Total duty remover 

47.305 


■ COPPER, grade A (5 per Torino) 

Close 

2003.5-5.5 

1669-70 

Previous 

1970-72 

1940-42 

Higtvlow 

2008.2006 

1984/1937 

AM Official 

2007.5-8 5 

1965-7 

Kero close 


1957-8 

Open mL 

173.609 


Total tt«fy remover 

73.467 



■ LME AM Official C/S note: 1.628S 
LME doing C/S rate; 1-B277 


Spct 1 6L‘S 3 mfler I C47 G mflis I £2! 4 n*er 1.6166 


■ HIGH GRADE COPPER (GOMEX) 



Sett 

Daya 




Open 


price 

cfcnyv 

man 

LOW 

Vol 

lot 

*0* 

9250 

-1 40 

93.90 

9200 

698 

2.891 

Dee 

9130 

-150 

93.60 

90.00 10 070 23291 

Jn 

90.50 

-1 10 

92 05 

91.70 

193 

1.873 

Feb 

89 85 

-i as 

91 40 

8850 

21 

934 

Mar 

SB 95 

-1.05 

91.10 

8780 

3,036 

12.045 

Apr 

Total 

8810 

--.40 

- 


11 542 

74/498 58,763 


PRECIOUS METALS 

■ LONDON BULLION MARKET 

(Puces supplied by N M Rothschild) 

GofttfTray oti S price C squiv SFr equh# 

dose 3r9.saoao.oo 

Opening J79 50-3, '9.00 

Morning fix 379.30 733 128 476J25 

Afternoon fix 379.50 233.223 .176.768 

Day ’3 High 378.70-379.10 

Day’s Low 380.10-380 50 

Picwm cine 380.00-300 JQ 


■ GOLD COMEX (100 Troy OZ4 S/taoy Og.) 



SMt 

Day's 



Open 


price change Hfgh 

low 

vu ut 

Ifa* 

378.1 

-il 

_ 

_ 

_ _ 

Doe 

379.1 

-22 

381.9 

377.7 19,920 90,522 

Fob 

391.1 

-2.3 

383.4 

380.5 

862 17250 

Apr 

3882 

+2.7 

3852 

3828 

1.246 11.778 

Jon 

385.5 

-23 

387.7 

385.0 

52 11291 

A m 

367.8 

-2.3 

3887 

388.7 

37 4284 

Total 





23209188225 

■ PLATINUM NYMEX (50 Tray OLf S/troy az.) 

Jap 

3842 

-14 

3852 

3832 

2209 19296 

Apr 

386.6 

-1.4 

3B8.0 

386.0 

653 8.125 

Jri 

389.fi 

-1.4 

380.0 

3892 

11 972 

Dei 

3929 

-1.4 

3840 

3840 

11 136 

Total 





3,177 28229 

■ PALLADIUM NYMEX (100 Tray as,- S/troy cot.) 

Dae 

118.75 

-0.75 117.75 116.50 

662 7264 

Mar 

11725 

-0.75 

- 

- 

2 451 

Jim 

118.90 

-0.75 

- 

- 

- 116 

Total 





692 8,131 

■ SILVER COMEX (5.000 Tray k.; Cano/troy ax.) 

No* 

478.8 

-12 

4820 

4820 

17 17 

Dm 

4808 

-2.0 

4880 

476.0 11 294 64.187 

Jm 

482.8 

-2.0 

- 

- 

28 

Mar 

487.6 

-2.1 

4840 

483.0 

712 13.750 

May 

491 9 

-21 

493 0 

489.0 

5« 6.618 

JM 

4983 

-21 

5025 

495.0 

144 5.166 

Total 





12200 962« 


ENERGY 


■ CRUDE OIL NYMEX (1.000 ban ate- S/banrefl 



Latest Day's 


Open 


pries change High 

1 MM 

Vol bit 

Dec 

23.45 -023 24.80 

2320 43.753 94.729 

Jan 

23.15 -0.74 24.20 

22.95 

21.204 53.052 

Feb 

22.72 -0 74 23 75 

22 60 

7,391 35.722 

Mar 

2228 -0 74 2125 

22-20 

4.207 22398 

An 

2190 -069 2277 

21.90 

2,357 16.150 

■it 

21.70 -0 49 2231 

21.70 

992 11.155 

Total 



87,312 M1.I7B 

■ CRUDE OIL IPE (S/barrel) 



Latoat Day's 


Open 


price change Ugh 

LOW 

Vet tot 

Dee 

22.90 -0 67 23 92 

22.90 

13.934 88.711 

Jan 

22.51 -0.66 23.43 

22.50 

9.326 43,508 

Ffeb 

21.90 -0.75 2260 

21 90 

3J73 24J55 

Mar 

21.55 -0.54 2222 

21.55 

664 26595 

Apr 

21.02 -0 52 21 65 

21.02 

1.761 (LB 96 

May 

20 73 -027 20 73 

20 73 

20 4.274 

Trial 




■ HEATING OIL NYUB (42.000 US gate. C/US gab) 


Latest Oar's 


Open 


price ctuhitffl lUyli 

lum 

Vol bit 

Nov 

66.50 -1 93 69 80 

66 25 19.226 3.892 

Dae 

66 95 -1.91 7U20 

68 60 

27.113 40.606 

Jan 

86.90 -1.91 69 * 

6460 10-268 30295 

Fob 

65 70 -1.96 68 55 

65.60 

4J7S 15576 

Mar 

03.00 -2.36 66 20 

63 00 

2.399 8.681 

Apr 

fit 50 -041 6250 

81.50 

592 5J229 

Total 



84045 129A0S 

■ GAS OIL PE (S/tome) 




Sell Days 


0 pm 


price change High 

Low 

VW tat 

Nov 

21900 -1 75 221.00 21800 

8.556 29J2B9 

Dee 

21430 *0 75 21600 21325 

5.635 24.887 

Jan 

21650 - 213.00 210.00 

2.154 19.861 

Fob 

20525 -050 207 25 205.25 

451 6.696 

Mar 

198.50 -0J50 200 50 

198.75 

587 5524 

Apr 

191 75 -03b 194.00 192.00 

124 4.422 

Trial 



21,291 102^85 

■ NATURAL GAS IIYUSt 110.000 nwfti.: SflliinBa.1 


Latest Darya 


Open 


price change High 

low 

Vol M 

Dee 

2 795 -a 069 2380 

2.765 22.036 40.689 

Jan 

2.770 -0.058 2 840 

2.740 

7.619 2MJ17 

Fab 

2.510 -0363 2.575 

2.495 

2,246 13.822 

Mar 

2.330 -0040 2-300 

2.325 

850 9,628 

Apr 

2.155-0020 2.173 

2.135 

696 5.702 

May 

2.060 -0.030 2.030 

2053 

177 4.686 

Total 



3&Z7414UB0 


Loco Ldn Moan Gold Lendhtg Rate* (Vs USS) 


■ UNLEADED GASOLINE 

NYMDl (43.000 US gate.. CAS gafc.) 


2 months 

3 months 

. 3.15 12 months J.4B 

..3.17 


Latoat Days 
pries change 

Mgb 

Low 

vol 

Open 

lot 

Sfver Fix 

O-Troy OS. 

US etc equiv. 

Mm 

67.00 

-3.00 

70 90 

97.00 

15313 

0,883 

SfXJt 

296 10 

482.50 

doc 

64 50 

-2.43 

67 80 

6435 

14.462 

27,114 

3 months 

. 300.30 

488.40 

Jan 

6100 

-2.13 

65 90 

62.90 

4.562 

13.013 

6 monltw 

304.45 

494.40 

Feb 

62J0 

-1.68 


62.80 

8«8 

4 647 

1 year 

313.55 

506.70 

Mar 

63.50 

-1 IB 

65.40 

6X50 

234 

1337 

Gold Coins 
Krugerrand 

Maple Leaf 
New Scworeign 

S price 
381-384 
3S4.BO-387J5 
B9-92 

£ coutv. 

234-236 

55-57 

Apr 

Total 

6630 


6635 

66 25 

352 

35331 

2.516 

E6£I4 


■ WHEAT UFFE (£ per tonne) 



Salt 

Day's • • 


Open 


price change MR Lear 

Vol 

tat 

Nov 

95.25 

-TJX) 9600 9550 

25 

Itt 

Jan 

97.15 

-0.85 07.95 07.00 

61 

2,197 

Mar 

98.40 

-08S 9900 9835 

261 

1865 

May 

99.55 

-0.96 100.25 09.40 

188 

1,575 

JM 

101.00 

-125 102.00 10125 

45 

286 

HOv 

96 75 

-025 98.00 9800 

5 

143 

Total 



800 

<L&7 

■ WHEAT CUT (S.OOObu mbi; csxTts/BOfc bushef) 

Dec 

371.25 

-875 38050 37800 

6,339 31594 

Mar 

368J0 

-650 37450 387.00 

2.396 

16859 

May 

358.50 

-1.75 36380 35750 

455 

2236 

JuJ 

34850 

-4.00 35250 34780 

815 

10292 

Sap 

351.50 

-350 35680 35180 

8 

265 

Doc 

359.00 

-1.00 36550 36480 

24 

175 

Trial 



18006 

61 805 

■ MAIZE CST (5,000 bu nsn; cent3/S6K> bushel) 

Dae 

206.00 

-425 270.00 265.50 45240138.063 

Mar 

272.50 

-425 27850 27200 17265 90249 

May 

279.00 

-450 28380 2785D 

8636 42281 

Jri 

283 JO 

-150 28850 28325 10876 

33,400 

Sap 

27900 

-3 00 28100 278.50 

351 

3528 

Doc 

27850 

-300 28080 27875 

3292 27.363 

Tata) 



96,192 336592 

■ BARLEY UFFE (£ per tonne) 



be* 

9150 

-0.50 9250 91.75 

28 

329 

Jan 

93ZS 

-0 50 33.75 9350 

43 

773 

Mar 

94.75 

-050 

- 

196 

May 

96.00 

-0.50 9625 96.25 

60 

98 

Sep 

91.50 

-0.50 

- 

1 

Trial 



129 

1522 

■ SOYABEANS CBT (S.OGCbu mdc canblBOb haheS 

Ho* 

667.75 • 

-21.75 66800 66680 31821 

26536 

Jn 

669.00 

-21.75 69050 66780 37.739 

65,362 

Mar 

67X50 -24 00 695 50 672.00 

7.477 

31567 

May 

678 00 

-22.50 700 50 677.00 

2.995 

18743 

Jul 

682.50 

-20.75 701.50 68280 

3909 

15.129 

Aug 

679 50 

-20 50 696 00 67800 

65 

1581 

Total 



85224 188581 


■ SOYABEAN OIL C8T (60,0001 tec centn/tt) 


Dec 

22.59 

-055 

22.94 

2258 

7,071 

49.158 

Jan 

22.86 

-0.36 

2320 

22.88 

2.795 

18903 

Mar 

2324 

-0.35 

2359 

2355 

1507 

17575 

May 

2359 

-055 

23 90 

23.60 

1.291 

9.B89 

Jul 

2392 

-0.35 

2420 

23S4 

925 

4.451 

Aog 

2395 

-055 

2450 

24.05 

113 

1544 

Total 





13535 103443 

■ SOYABEAN MEAL CBT (100 tons; S/Ion] 

DOC 

219.5 

-7.1 

228.6 

219.1 

12.423 

39546 

Jan 

214.7 

-7.7 

221.7 

215.0 

3.685 

11520 

Mar 

2110 

-7.9 

2184 

210.6 

3,033 

18.313 

May 

200 a 

-7.9 

2162 

209.5 

1262 

9589 

Jul 

2091 

-7.4 

216.0 

209.0 

727 

5,653 

itag 

208.3 

-82 

2145 

210.0 

137 

1540 

Total 





21506 

88574 

■ POTATOES UFFE (C/lomel 




Nov 

325 

- 

- 

- 

- 

2 

Mar 

68.0 

■*0 5 

— 

- 

— 

— 

Apr 

70.0 

-05 

«9.6 

680 

33 

1.319 

May 

79.0 

-0.5 

- 

- 

- 

17 

Jun 

690 

*0.5 

- 

- 

- 

- 

TDM 





23 

1538 

■ FREIGHT (81FFEX) UFFE (SI (Wntfex point) 

Od 

1282 

-1 

1280 

1280 

3 

714 

Ho* 

1360 

*22 

1363 

1349 

49 

580 

Dec 

1310 

*22 

1318 

1298 

86 

4S7 

Jan 

1289 

+26 

1300 

1270 

66 

1.885 

Apr 

1306 

+18 

1310 

1305 

18 

661 

Jnl 

113) 

+11 

- 

- 

_ 

196 

Trial 

Dose 

Piw 



224 

4AM 

8R 

1311 

1298 






FUTURES DATA 

AB futures data supplied bv CMS. 


Taa 

Prices at auctions in the main producing 
countries this week were generally fnm hut 
in Australia ana Now Zealand there was no 
clear advance. The Eastern market indica- 
tor w Austraka dosed at 576 cents, just 1 
cent higher thin a week ago. the western 
indicator was unchanged at 535 cents: and 
In New Zealand the tram mtScatar was 
down 1 cent to 467 cents a kg. Prices rase 
crude sharply m South Africa but weakness 
In the rand has to be taken Into account 
there. Apart from die absence of any reaBy 
dear trend ti prices, wool ottered at auc- 
tion is being token up well by the trade, 
with clearances better than for some time. 
Sterling strength presents some problems 
lo a UK trade wMdh lor same rime has 
been better placed than many competitors 
on the Continent of Europe . 


■ COCOA UFFE (E/tarme) 



Sett 

Days 


Open 


--j|- r, ^ ||| t j. 

pnea oiiy mgn 

Law vu tat 

Dec 

324 

-7 

938 

924 1.6SS 27.049 

IBsr 

956 

-6 

066 

956 1.695 42.769 

M«T 

974 

-6 

964 

973 241 6 16.117 

Jnl 

969 

-6 

999 

992 706 12.143 

S«P 

1005 

-6 

1015 

1006 838 5Z75 

Dec 

1017 

-6 

1026 

1017 209 4.469 

Trial 




0,194131,697 

■ COCOA CSCE (10 tonnes; 8/tonnes} 

Dec 

1353 

-11 

1366 

1350 4,203 21.734 

Mwr 

1392 

-5 

1401 

1389 3.488 24.564 

May 

1413 

-7 

1420 

1411 179 8.988 

Jri 

1426 

-3 

1431 

1425 69 6^37 

Sep 

1441 

-2 

1450 

1440 108 5.789 

Dec 

1462 

-2 

1470 

1469 48 816 

Trial 




8£D3 77521 


■ COCOA QCCOt (SDR* a/tonne) 


Oct » Price Pie*, day 

Daly 1022.60 1011.49 


■ COFFEE UFFE (S/tonne) 


Ho* 

1463 

-19 

1488 

1460 1532 

5,015 

Jan 

1385 

-2 

1390 

1375 2.124 15,420 

Mar 

1334 

+2 

1340 

1320 472 

8J77 

May 

1318 

+1 

1320 

1302 439 

3552 

Jnl 

1319 

+4 

132D 

1312 57 

488 

Trial 

1319 

+4 

1304 

1304 3 133 

4524 32527 


■ COFFEE ■€■ CSCE (37.5001 bs; cents/lbs) 


Dec 117.20 -195 11190 1163S 5.129 11358 

Mar 106.10 -020 107.25 105.60 2.006 10.109 

May 10385 -0.10 104Z5 10290 685 3,712 

Jut 103.40 +0.40 102.50 10250 364 1,079 

Sep 10225 -HUB 10225 10225 141 519 

Dec 101.95 -0.50 - 101.00 63 409 

Total asm mom 

■ COFFEE (ICO) (US cents/fround) 


Oct 30 Pm. day 

Comp, dally 9409 99.43 

15 day overage 9129 99.33 


■ WHITE SUGAR UFFE (S/tanna) 


Dec 

309.1 

-38 

312J> 

3080 1004 

7,713 

Mar 

305.5 

-3.6 

309Z 

304.0 1513 12.662 

May 

307.3 

-3.4 

3104 

306J5 

526 

4,544 

Ang 

3094 

-3 6 

312-2 

308 8 

224 

1.706 

Oct 

302.4 

-4.4 

30BA 

303.5 

25 

1,003 

Dec 

305-2 

-4Jj 

306-6 

305.5 

13 

284 

Trial 





3A88 2W« 

■ SUGAR 'll 1 

CSCE (1 1 2.0008*;; cents/lbs) 

Mar 

10.30 

-a 17 

10.46 

1029 6.300 85,357 

May 

10.44 

- 0.10 

10.54 

1042 1.681 29,467 

Jnl 

10.39 

-0.09 

10.48 

1038 

423 19308 

Oct 

10.39 

-0.07 

1046 

1038 

160 11,184 

Mar 

10.42 

-0.03 

10.47 

10.42 

65 

3533 

May 

10.42 

-0.03 

10.46 

10.44 

103 

607 


Total 8^08144997 

■ COTTON NYGE (SO.OOOttra-. cena/Tba) 


Dec 72.05 -0.90 73.45 72.00 5,601 24,742 

Mar 73.84 -0 92 75.30 73.60 2,697 13,788 

May 74.95 -0.95 7620 74.90 635 8.158 

Jot 75.45 -0.98 75.74 75.40 527 6.755 

Oct 76.13 -0.42 76.45 78.40 17 1275 

Dec 7629 -0.01 76.50 7620 34 4 503 

Total E4B9 SBjBBS 

■ ORANGE JUICE WVQE H5,000fc8; crataflta) 

No* 10620 -1.75 10720 10525 250 5209 

Jan 99.80 -1 .55 101.80 99.40 535 8,435 

Mar 10250 -1.85 10420 10225 288 4205 

May 105.10 -200 106J50 1 05.10 68 1.127 

Jol 107.60 -220 108 80 IDS 00 17 546 

Sep 109.10 -220 - 250 

Total 1,141 19266 


VOLUME DATA 

Open [merest and Volume data shown for 
contracts traded on COMEX, NYMEX, CST, 
NYCE. CME. CSCE and IPE Crude OB are 
one day in arrears. Volume & Open Interest 
totals are lor «jl traded mon th s. 


INDICES 

M Reuters (Base: 1879/31 ■ 1001 
Oct 31 Oct 30 month ego year ago 
18G82 1858.3 1018,A 2121.4 

M CRB Futures (Base: 1967 s TOO] 

Oct 30 Oct 29 month ago wear ago 
241.66 241.11 

■ QSCI Spot (Base. 1970 c 100) 

Oct 30 Ocd £9 month ago year ago 
210.82 £10.17 205.22 18271 


■ LIVE CATTLE CME (40.000toa; centa/Bm) 



Sett bays 



Opao' 


Price chaaga Mgfa 

low 

M tat 

Dae 

66-675 -0.175 

66.925 

66.375 

7,466 38,381 

Fab 

63.475 

63.725 

63 ZOO 2537 18588 

Apr 

B5ZS0 +025 

65550 

64.900 1513 12526 

Jan 

63550 +0.175 

63-275 

62850 

483 5520 

Aug 

02525+0.125 

62500 

62450 

128 6.136 

Oct 

65.000 

65.250 

64.950 

87 3.105 


Total 11,711 84*» 

■ LIVE HOGS CME (40,0001 teg centa/lbs) 


Dec 

54.400 

-055 

55150 

54.150 5579 15.016 

Fab 

74.150 

-05 

75.150 

73.950 

2639 

8,446 

Apr 

69550 -tt725 

70550 

69.900 

601 

2,924 

Jm 

74.650 

-0.6 

75.250 

74550 

398 

1093 

Jri 

72.650-0.475 

72550 

72.450 

81 

774 

Aug 

69.175 

-0.45 

80.700 

89.150 

82 

855 

Trim 





9,143 31589 

■ PORK BELLES CME (40.0008x1: cantsrtbo) 

Fr* 

66500 

-Z25 

71500 

68400 

1523 

4,818 

Uar 

68575 -2.375 

71.000 

67550 

153 

510 

Mar 

69500-2525 

71 575 

69.250 

54 

350 

Jul 

69.700 -2575 

71.000 

09.800 

70 

1B2 

Aug 

60 . 00 a 

-2 

- 

60.000 

4 

48 

Trial 





1589 

5409 


LONDON TRADED OPTIONS 

Strfice price 8 tarme — CaBs — — Puts — 


■ ALUMINUM 


(99.7%) LME 

NOtf 

Feb 

Nov 

Feb 

1400 

25 

93 

10 

41 

1425 .„ 

12 

70 

70 

51 

1450 . 

5 

57 

57 

64 

■ COPPER 





(Grade A) LME 

Nov 

Feb 

Nov 

Feb 

1900 

82 

124 

6 

88 

1950 _. . _. ._. _ 

45 

100 

18 

113 

2000_ - _. 

20 

79 

43 

142 

■ COFFEE UFFE 

NOV 

Jan 

Nov 

Jan 

1500 

16 

21 

133 

187 

1550 . . 

12 

15 

178 

231 

1600 

9 

10 

224 

276 

■ COCOA UFFE 

Dec 

Mar 

Dec 

Mar 

950 _ ... 

6 

39 

32 

33 

975 

3 

28 

54 

47 

1000 

1 

20 

77 

64 

■ BRENT CHUDE 





IPE 

Dec 

Jan 

Dec 

Jen 

2300 

- 

- 

50 

- 

2350 

- 

- 

- 

- 

2400 

- 

64 

- 

- 


LONDON SPOT MARKETS 

■ CRUDE OIL FOB (per barrel) +or- 


Dubai 

S20.9i-0.95x 

-0/49 

Brent Blend (dated) 

$22.62-2.64 

-0.535 

Brent Blend (Dec) 

$23.02-3.04 

-0.485 

W.T.l. 

S23.48-3.50x 

-0.73 

■ OH. PRODUCTS NWE prompt driwiy OF (tonne) 

Premium Gasoline 

$237-239 

+2 

Gas OB 

$219-221 

+1 

Heavy Fuel CHI 

$117-119 

-1 

Naphtha 

5224-226 


Jet fuel 

$248-250 

+2 

Diesel 

$237-239 


■ NATURAL GAS (Ponce/therm) 


Bacton (Dec) 

13.60-3.75 

-0.025 

PWdIhii Asm. rat London (01711 339 8, He 

■ OTHER 



Gold (per tray az)A 

$370.80 

■0.40 

Silver (per tray 04 $ 

485.50C 

+2.00 

PtatSnum (per tray az.) 

$38i jn 

+0.75 

PaBedium (per troy oz.) 

$116.50 

+0.75 

Copper 

98.0c 


Leaf (US prod.} 

45.006 


Tin (Kuala Lumpur) 

14.80r 

+0.15 

Tin (New York) 

277.50 

*2.00 

Cattle (Wo weight) 

97.360 

-0.4C 

Sheep (We weight) 

122. 5Sp 

+3Z2- 

Pigs (five wwghqr 

93-SSp 

-0.90* 

Lon. day sugar (raw) 

S262.2Q 

-1.60 

Lotl day sugar (wts) 

$319.90 

-2.70 

Bstey (Eng. teed) 

Cl 00.0 


Maize (US No3 Yellow] 

127.0 


Wheat (US Dark North] 

Unq 


Rubber (D«c)V 

82.00p 


Rubber (Jan)V 

82.00b 


Rubber (KLHSSNol) 

315.01 

♦1J 

Coconut Oi (Ph*§ 

$ 750.0V 

+10.0 

Prim OS (MatayjS 

542.5s 

+10JJ 

Copra tPh3)§ 

5435-Ov 


Soyabeans (US) 

191Hz 

-12 

Cotton Outlook'A' index 

75.75 


Woottops (64s Super) 

406p 

-12 


E (Mr loms irim affmfw M od p panccflig. c conta/b 
r foggftAq. m MA| w r oorts/kg. , the * Oc UNn x Nov 
V Leman RrydcaL 8 Ctf RkSMam. 4 BuOon marfter 
dost ’ Change an wee#. TBased on 1.754 head at 

add. 



CROSSWORD 


No.9,214 Set by ARMONIE 



ACROSS 

l Be concerned about politi- 
cian's personal character 
(7) 

5 Time to stir a rich confec- 
tion 17} 

9 Famous books Edward 
acquired (5.) 

10 Public announcer Is one 
attempting to take posses- 
sion of private club (4.5) 

11 Cleo later cooked a sort of 
roll (9) 

12 Classically elegant room (5) 

13 Lie about second-class food 
(5) 

15 A quiet young attendant, 
about to finish the supple- 
ment (9) 

18 Obstruction made back run 
round pole (9) 

19 Hapless daughter, rejected. 
Is to lose heart (5) 

21 Expose a saint's blunder (5) 

23 Succulent fruit found in a 
recent development (9) 

25 A criminal catches viral 
infection in profusion (91 

26 Dash back to get European 
business (5j 

27 The high point is when the 
first lady gets to lie down 
(71 

2 S Beat the fellow for touch- 
ing (7) 

DOWN 

1 The capacity is fulfilled (7) 

2 Refuse carrier made young 
writer get up (S 3 ) 

3 It is used to wash tender 
space traveller ( 5 ) 

4 Admit soldiers to popular 
harbour (9) 


5 Weather Otto welcomed, 
being partly drier (5) 

6 Cue tn hand, playing with- 
out restraint (9) 

7 Dash around Northern 
Welsh town (5) 

8 An artist in every perfor- 
mance finally gives p ain to 
the listener (7) 

14 Captivate parent, messing 
about on the river (9j 

16 Having foreknowledge of 
the Channel Isles in Uria 
day and age (9) 

17 Hate to fade in no time ( 9 ) 

18 The army is on time to get 
the captive (7) 

20 Clergyman entering 
enclosed bar (7) 

22 Plunder is common around 
Leatherhead (5) 

23 Ensemble performing with- 
out protection? (5.) 

24 Change a place in West 
London <5> 


Solution 9.213 





















































FINANCIAL 


TIMES FRIDAY NOVEMBER l 1996 


Offshore Funds and Insurances 


FT MANAGED FUNDS 





;a$885*2& 









































































































FINANCIAL TIMES FRIDAY NOVEMBER I 1990 


























































































































































FINANCIAL TIMES 


FRIDAY NOVEMBER 1 ■*» 



LONDON STOCK EXCHANGE 


Footsie regains its poise in late trading 


FTSE All-Share Index 


Equity shares traded 

Turnover By vohjnw (rnJI^. 

(nxra-ftwrV^ btwmost and aw™**-* w*now 

1.000 - 


MARKET REPORT 


By Joel Kibno 

The UK market yesterday made a 
brave attempt to regain its poise 
following Wednesday's quarter of 
a percentage point rise in base 
rates, but there was no hiding 
tbe fact that inflation is now 
back as an issue for investors. 

Strategists continued to discuss 
the implications of the chancel- 
lor's move and many believe a 
give-away budget later this 
month is now more likely, partic- 
ularly after a new opinion poll 
showed the Labour party with a 
commanding 28 percentage point 
lead. However, it was concerns 


about the inflationary pressures 
in the economy that moved cen- 
tre stage. 

The FTSE 100 index opened 
some 11.6 points down on the 
back of those concerns, although 
Wednesday's fall in the US equity- 
market also played its part in 
denting sentiment. 

Mr Richard Jeffrey, group econ- 
omist at Charterhouse bank, said: 
“Prior to yesterday's increase, 
higher inflation was an area of 
speculation by individual econo- 
mists. But by raising base rates 
the chancellor has put inflation 
on the market agenda." 

However, it was not all doom 
and gloom and some continued to 
believe in the underlying 


strength of the market. One such 
optimist is Mr Philip Wolsten- 
croft, UK strategist at Merrill 
Lynch. He believes the market 
will continue steadily ahead 
because, "profits growth will be 
enough to offset p/e (price/earn- 
ings ratio) contractions brought 
by tighter monetary policy”. 

That feeling of underlying 
strength, together with an ele- 
ment of position covering by 
bears, saw the early weakness of 
the market reduced by late morn- 
ing. However, volumes were ini- 
tially low - a clear indication of 
traders' continued caution and 
the general unwillingness of 
some of the leading institutions 
to enter the fray. 


That all changed in the after- 
noon. The early firmness on Wall 
Street following the release of 
sluggish US economic data 
helped trigger a turnaround in 
London's fortunes. 

A firm futures contract, which 
was trading at a premium to fair 
value, also helped the cash mar- 
ket shake off some of its recent 
gloom. Footsie moved steadily 
ahead to close at the best level of 
the day. although dealers 
suggested a further advance had 
been checked by continued ner- 
vousness about inflation. 

The leading index finished at 
3,979.1, a gain of 15.2 on the day. 
recovering from a low of 3.95L9. 
Tbe FTSE 250 continued to lag 


behind and -closed 3.3 down at 
4.422.5. Long-dated gilts also 
came off their lows, but were still 
down £ at the finish. 

With activity having picked up 
in the afternoon, volume at the 
6pm count was 659.5m shares, 
down on Wednesday's 720.8m 
shares. The value of customer 
business transacted on Wednes- 
day was £1.3bn. 

There was renewed interest in 
the food retailers, which analysts 
suggest is a defensive sector in 
the new climate on interest rates. 
Earlier this week. Charterhouse 
Tilney suggested investors go 
overweight in the sector. Asda 
advanced on favourable AGB 
marketshare data. 



SsuckExM 


Indices and ratios 

FTSE 100 3979.1 +16.2 

FTSE 250 4-122.5 -3.3 

FTSE 350 1982.7 +5.6 

FTSE All-Share 1956.90 +4.8S 

FTSE All-Share yield 3-60 3.79 

Best performing sectors 

1 Electricity - +1- 7 

2 Retailers: Food - +1-6 

3 Utilities - +1-2 

4 Extractive Industries ...« ....+1.2 

5 Water 


FT 30 28t0.9 +H 3 

FTSE Non-Fins p-'e 18 0B 1&00 
FTSE 100 Fut Dec J °“.° "t 0 ° 

10 yr Gilt yield . * A'no ■ 

Long gllt/equity yW ro**° —08 

Worst performing sectors 

1 Healthcare -*’■ 

2 Building & Construction 

3 Transport “9'j' 

4 Engineering: Vehicles 

5 Atcoholic Beverages -£>■' 


Broker 
boost for 


By Peter John, Lisa Wood 
and Ramraj Gogna 

A powerful showing from 
the UK generators placed 
them among the best Footsie 
stocks on the day as one or 
their brokers took a hard 
look at their performance 
and followed it up with some 
enthusiastic research. 

Both National Power and 
PowerOn shrugged off the 
general weakness in the elec- 
tricity sector, with UBS tell- 
ing clients that worries over 
the companies were exagger- 
ated. 

UBS believes arguments 
about competition from a 
second "dash for gas” are 
unjustified. It adds that the 
generators are in any case 
unlikely to suffer a loss of 
margin as they will increas- 
ingly be able to cut costs 
through buying cheaper 
coaJ. 

The broker points out that 
both have underperformed, 
but prefers PowerGen on the 
basis that the new manage- 
ment is focusing on share- 
holder value and the differ- 
ences between the two 
companies have narrowed. 

UBS electricity analyst Mr 
Iain Turner added: “On an 
enterprise value basis, 
PowerGen is 30 per cent 
cheaper than National 
Power and the market does 
not seem to have appreciated 
this." 

It has put a 730p a share 


price target on PowerGen 
and a 52Sp a share target on 
National Power. PowerGen 
shares r>ise 18 to 510p while 
National Power lifted 13* •+ to 
407p. 

The food retailing sector, a 
popular choice for defensive 
investors at a time of inter- 
est rate rises, performed 
well, with Asda. tbe best 
stock in the FTSE 100. rising 
4*4 to 117' sp on trade of 21m 
shares, the heaviest volume 
in the market. 

This was partly because of 
monthly figures from AGB 
Research which suggested 
that, in the month to Octo- 
ber. Asda's total sales were 
growing at the fastest rate of 
all tbe main food retailers. 
Safeway, which rose 10 to 
364'-4p, was also said to be 
doing well. 

In addition, LIBS upgraded 
its forecasts for Asda from 
£3 35m to £340m this year 
and from £3?5m to £3S0m 
next year. UBS also reiter- 
ated its buy stance. 

Earlier this week. Charter- 
house Tilney recommended 
an "overweight" stance on 
the sector. 

Cookson, tbe industrial 
materials group, fell 10'4 to 
226 l .sp, with ABN Amro 
Hoare Govett downgrading 
its profit forecasts for the 
□ext two years mainly 
because of the performance 
of tbe group’s electronics 
division. 

On Wednesday. NatWest 
Securities also trimmed its 
forecasts. 

Shell Transport, one or 
four big companies to report 
this week, disappointed with 
its figures - but only at the 

mar gin 

The shares fell 13 to 


1007'4p. continuing a slide 
which has taken the price 
down from a recent closing 
peak or 1056p as the market 
reacted to figures slightly 
below the consensus of ana- 
lysts' forecasts. 

However, one specialist 
said if the effect of explora- 
tion charges, redundancy 
and stoppages were added 
back, the picture was much 
as expected. 

More significantly. Shell 
revealed it now has no net 
debt and the market is 
poised Tor news about signif- 
icant restructuring of the 
European refining 
operations as well as a joint 
venture with Texaco. 

It will hold a big presenta- 
tion in New York on Decem- 
ber 13 and analysts said 
investors may hang fire 
until then. 

Body Shop hardened 4'.-i to 
200p after results at the top 
end of the range, while King- 


fisher bounced 6V* to 653Vtp. 
Thorn softened 5 to to 346'4p 
following its ann ouncement 
that it was to challenge a 
Wisconsin ruling on rental 
purchase transactions. 

Pilkington hardened l 1 .* to 
171p, in spite of a fall in first- 
half profits, as had been 
expected. 

BZW, which left its fore- 
casts unchanged, moved the 
stock from a “hold'' to a 
"buy" because it said the 
outlook painted by the group 
was rosier than it bad 
thought and recent price 
increases in Europe 
appeared to be sticking. 

Guinness fell 5 to 440p 
after what one analyst 
described as dull figures for 
the Far East from Seagram, 
a big competitor . In addition, 
marketmakers have been 
defensive after speculation 
that LVMH might fund Its 
£1.53bn acquisition of a 
majority stake in DFS, the 


FT 30 INDEX 

Oct 31 Oct 30 Oct 29 Oct 28 Oct 25 Yr ago 'High 


‘Low 


2810.9 2799.1 2819.3 2839.4 2834.1 2577.7 28950 2688.8 


Ord. drv. yield 

406 

4.07 

4.03 

4.01 

4.01 

4.12 

422 

3.76 

P/E ratio net 

18.99 

16.95 

17.10 

17.22 

17.20 

15.52 

17.48 

1580 

P/E raho nd 

16.83 

16.79 

16.94 

17.06 

17.04 

1525 

17.30 

15.71 

FT 10 iWi ccmsUMn ivgh 29852 OUI/K. i cm 434 2805140 Base Dam 1.7 

■35. 


FT 30 hourly changes 








Open 9.00 

10410 11.00 1200 1300 1400 1500 

16.00 

High 

Low 


2787 4 2792 3 2 795 1 

2793.T 27930 27940 

2796.8 

2799.2 2808 

2 28100 

27062 


Oct 3T 

Oct 30 

Oct 29 

Oct 28 

Da 25 

Yr ago 

SEAQ bargains 

35.647 

36.098 

38.313 

42.436 

34.484 

28.147 

Equity turnover (Emit 

- 

1335.6 

1203 1 

12052 

1481.1 

1542.4 

Equity bargainst 

- 

27247 

28.510 

32.501 

20.340 

30036 

Shares traded (mOt 

_ 

515.8 

497.9 

4232 

458.6 

5930 

rEnokidlng iran>-ma1«ol business and ovameas nmner. 




Oct 31 

Oct 30 

Oct 29 Oct 28 Oct 2S Yr aoo 

■High 

■Low 

FTSE AIM 102500 102220 1021.70 102220 1021.90 

IS FTSE imemabcnal Limited 1996. AS rights reserved. Tor 1996. 

1140.40 

965.70 

■ London marks! data 







Rises and falls' 
Total Rises 

549 

52 Week Mgha and lows 

Total Highs 82 ' 

UFFE Equity options 
Total contracts 41.409 

Told Falls 

758 


Calls 

24.480 

Same 

1299 

Total Lours 131 j 

Puts 

16029 


Oct 31 'Data based on Equity shares listed on the London Sham Service. 



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American duty free shopping 
chain, by selling part of its 
holding in Guinness. How- 
ever, analysts said tbis was 
unlikely as LVMH had a 
strong balance sheet. 

Stakis hardened one 
penny to 99'jp after it con- 
firmed a fg?.Ptni rights issue 
to buy the Metropole hotel 
chain. 

Healthcare group Eadie 
Holdings fell 5*v to 12'4p on 
a profits warning. 

Printing specialist Wace 
fell sharply after warning 
that 1998 profits would be 
“substantially lower than 
current market expecta- 
tions". The shares were 
down 65 to 69! ip. 

Insurer Commercial Union 
spiked up 9'-i: to 648 Vi p just 
before the close of trading on 
the back of an options- 
r elated trade carried out by 
one US broker. 

Pharmaceuticals leader 
Zeneca fell 24 to 1672p an 
continued profit-taking as 
overseas earners remained 
out of favour in the light of 
the UK rate increase and the 
strength of sterling. 

Chemicals group Court- 
aulds rose 16 to 456p with 
BZW reiterating Its positive 
view on the group. 

Airport operator BAA shed 
9Vi to 497' ap in the wake of a 
report suggesting it could 
face a big tax bill under a 
Labour government 

The press report said BAA 
could have to pay more than 
£500m if it was included in 
Labour plans for a windfall 
levy on privatised utilities. 
However, some analysts said 
BAA was not regarded as a 
prime target for the levy. 

Perkins Foods softened 2 
to 84p following its 
announcement of a one-for- 
six rights issue at 74 pence 
per share, raising £15.5m to 
help fund the acquisition of 
the Dutch Disselkoen Group. 
One analyst said that the 
market had not been expect- 
ing a rights issue and it had 


not gone down too well. He 
said the company would 
have been better off using 
debt rather than equity to 
finance the purchase. 

Grampian TV added 27*/* 
to 327 Vsp on very thin trad- 
ing with speculation con- 
tinuing about a takeover bid. 
Scottish TV is the most 
likely contender, according 
to analysts. Other potential 
takeover candidates also 
hardened, including Border, 
which rose 5 V, to 306’ :p. and 
Yorkshire Tyne Tees which 
increased 25 to l267Vip. Scot- 
tish fell 1 to 731Vxp. 

Mondas, a business soft- 
ware company closed at 90 l 4 1 
a 15Vip premium to its offer 
price. Jardizterie Interiors, 
which was floated at 114p, 
closed at 125p. 


FUTURES AND OPTIONS 

■ FTSE 100 INDEX FUTURES fljFFE) E25 per lull Index poln^ 


lAPTI 


Open Sett price Change High Low 
Dec 3977.0 4003.0 +20.0 4004.0 3975a 

Mgr 3&99.0 4018.0 +20 0 3990 0 3989.0 

Jwi 4033.0 +20.0 

■ FTSE ZSO INDEX FUTURES ILlFFE) CIO per fuU HKfex pgtm 
4460.0 - 4460 0 4460.0 


EsI. id Opon ml 

1 1864 62158 

10 735 

0 13.' J 


Dec 


4460.0 


4009 


100 INDEX OPTION UJFFEi f3975 I £10 per lull index point 

4000 4050 4100 4150 

CPCPCPCP 
31 «'* 12b 77 3 IS 1 175 

71»-71 47 98 28 132*2 14*2 ’78 
97 88*2 72'- 115 491- 145 33b 132*2 


3800 38S0 3900 3850 

CPCPCPCP 

No* IBb 3b 147 6b 101 b 12 Wj = 2 

Dec 222 1 7b 178b 24 14012 36 1«b SI 

Jan MO 29b 201 40b 162b 52 128 69 


fell 261 U 221b 53b «b 65b 1®b 83b IWblgJb 9* »28 70b 157 52b 192 
Junf 311b 91 247b 124b 188 163,J 138 ‘ ,3 

Ctfel 13,442 Puts 4.393 

■ EURO STYLE FTSE 100 INDEX OPTION lUFFEi CIO per lull mde« pomt 

3875 3825 3976 4025 4075 4125 4175 

5 123 9b >1 16*2 45b 31 20*2 56 7 93 2 136b 1 '®b 


168b 

186b 21b 157 
222 34 182 
Mar 250 61 
Jurf 298 99 


Dec 

Jan 


58 58 SO 36 107b 20b »»b 11 191 
73 Bib 93b 57b H9b 39b 151b 26 188 
122b 129 76 180b 

176bl»b 12Bb 217 

ftafc 2_96* Puis (-a) • Untatyng Mm value. PnoUums ‘Imam ora baaed an uttenwrt (nicy, 

t Lung Hand expkv norths 


30 119 41b 86 
44 144b 56b I” 
180b 89b 
233b 129b 


LONDON RECENT ISSUES: EQUITIES 


Issue 

Ami 

Mkt 




Close 






price 

palel 

cap 

1996 


pnee 


Net 

Div. Grs 

P.-E 

P 

up 

(DnJ 

Hbjh 

Low 

Stock 

P 

+/- 

div. 

cov. ykl 

net 

§3 

FP. 

70S 

4*4 

4 fBeechcroft 

4 


_ 

_ 

. 

132 

§135 

F.P. 

47.1 

162b 

152b Charles Taylor 

161b 


L42 

0 3 

3J 

51.3 

- 

FP. 

907 

162b 

157b Itteep Sea Leisure 

157*2 


- 

- 

- 

“ 

ISO 

FP. 

294 

169b 

759*2 Ottran Bectm 

159*J 

-1 

W2 75 

2.9 

22 

15.1 

§146 

F.P. 

350 

246 

148' 

SecRetaiSys 

170 +4*2 

- 

- 



<1 

FP. 

11.4 

316 

305 

Eurasia Mining 

305 


- 

- 

- 

- 

§80 

FP. 

249 

92b 

90b 

Tunes, First 

90*2 


bw- 

- 

- 


100 

FP 

101 .5 

113b 

101b ' 

Goo Inter Med 

101*2 


- 

- 

- 

- 

§ 

F.P. 

- 

127 

111*2 HartOona B% 

121 


- 

- 

- 

- 

§100 

F.P. 

249 

99b 

99 hflthcare Refcrm 

99*2 


- 

- 

- 

- 


FP. 

1.867 

429 

358 Imperial Tobacco 

358*2 

-1 

W2Q.0 

iS 

7.0 

• 2 

§ 

FP. 

540 

177 

164*2 Interoute Tflteem . 

164b 

-1 

- 

- 

- 

- 


FP. 

11.0 

132*2 

124 b tJarJnerte kits 

125 


- 

- 

- 

- 

§285 

F.P. 

1380 

310 

292*2 John D Sports 

298b 

+1 

L40 

2.5 

10 

28.1 

§140 

F.P. 

336 

160*2 

14Sb Lovendon 

157b 


R3.4 

30 

27 

123 

72 

F.P. 

270 

79*2 

73b tloltus Road 

75 


- 

- 

- 


" 

FP. 

420 

131b 

128 Lomond Undrwrtng 

130 


- 

- 

- 

- 

§10 

FP. 

403 

12b 

11*4 fMeara Group 

11*4 

-*4 

h02 

- 

21 


. 

F.P. 

9193 

cielL 

E12JI MMeraiMn Cham 

C12l* 

-*« 

060c 

- 

10 

- 

- 

F.P. 

546 

90b 

82*2 fMondas 

90*2 


- 

- 

- 

- 

§154 

F.P. 

190 

2iib 

167 b Oranml ReJ 

205b 

r*2 

- 

- 

- 

232 

170 

FP. 

1.009 

177 

187*2 ThtsUe Haleb 

167b 

-b 

R17 

20 

28 

18.0 

§250 

F.P. 

192.1 

302 

282b Ultra EWn 

295*7 


RW60 

2.3 

2.7 

200 

9 

FP. 

102.3 

62 

52 tlfirwyCorp 

54 


- 

- 

- 

- 

t Alternative Investment MarhrL § Placing price. ' MraduCliOrL For a Ml exptorvmcm ot al 

outer eytndole please rater to The London Share Service rates. 





t#t- GOLD MIN ESi lNOEX 

» t f' - 



:fe 


i-i 




Oct 

% chg Od Year 

Gross 

d, 

P/E 

52 amok 




30 

on day 29 ago 

yield % 

ratto 

High 

LOW 


Gold Ittnas Max (31) 
■ B ajia na l Men 
Africa (13} 

Australasia (6) 

Monh America (12) 


188935 +43 187837172335 138 


24M.77 -08 
2132.18 -03 
170132 +0.9 


2445.33 2272.74 
213690 223434 
188552 1496 98 


3.14 
263 
0 75 


35.60 

2134 

6437 


1.73 1722AI 


355386 227274 
32734 2005 75 
21B6.39 1488.94 


Copyright FTSE inter na ti on al Lfrtmd 1996 am rights laaanrml F^juraa in fcradwts anon 
rajmnor of companion Baals US Dotara. Ba&o Valuer 1000.00 31/12'*' t Partial. Lalast pnooa 
were imavarabto lor me erftion- 


h-FTSB:. 

S'c^ipfe's 

fiaiic.Tv 

; h’st.rjte .b'f 


levCi 

K^Se 

C \ 



Day's 

Year 

Dtv. Net 

PTE 

Xd adi. 

Total 



Oa 3T chge% 

Oct 30 Oct 29 Od 28 ago 

ytcMK. cover 

ratio 

ytd 

Return 


FTSE 100 
FTSE 250 
FTSE 250 ex IT 
FTSE 350 

FTSE 350 Higher Yield 
FTSE 360 Lower Yield 
FTSE SmaDCap 
FTSE SmaOCap ex IT 
FTSE AS- Share 


+0.4 

- 0.1 

- 0.1 

+0.3 

+0.5 

♦ 0.1 


3979.1 
•W22.5 

4483.5 
1982.7 

1882.5 

2090.1 
2107.89 
2170.58 
1956 90 

■ FTSE Actuaries Industry Sectors 

Day's 

Oct 31 Chqe% Oct 30 Oct 29 Oct 28 


396339 3993.5 40253 3500.4 
44253 4434.7 4443.1 3073.7 
4406.6 4475.8 4482.8 3891.8 
1877.1 1989.6 20023 1742.7 
1874.0 1886.8 1899.9 1742.9 
20073 SOMA S1 12.0 174&8 
-03 2171.76 217332 2177.97 193939 
-03 2174.00 21 76.09 21 78.38 1 924.86 
+03 1952.02 1963.50 1975.88 1721.98 


3.94 

3.52 

3.62 

3.85 

5.17 

2.67 

3.14 

334 

3.80 


2.03 

1.50 

1.52 

1.83 

1.82 

2.12 

138 

1.65 

1.91 


Year 

ago 


Dtv. Net 
ywfcllt cower 


15.60 15330 1656.13 

23.07 158.61 1803.16 
22.68 166.98 1624.02 
10.04 7636 1685.97 
13.30 97.00 134937 

22.07 54.07 148234 
25.13 60.85 1802.99 
22.65 64.57 1818.15 
17.27 72.82 1689.29 

P/E Xd adj. Total 
ratio ytd Return 


10 MINERAL EXTRACTKJNf24) 394804 

12 Extractive tndustrtestS) 4241.19 

15 CM. Integrated^) 3965.71 

16 Oil Exploration 3 Prod{151 2867.42 


-0. 1 3850.90 3090.01 381 0.05 2069.67 3.01 1 .63 

+13 4192.02 4194.15 4201.63 4072 94 3.83 2.66 
-0.3 3976.54 4023.49 4044.96 2853.01 3.77 1.45 
2086.00 2893.332917.99 1874.10 1.85 1.71 


213712005 168035 
1238 162.00 120430 
22.91 135.18 1777.19 
39.58 52.04 1737.48 


20 GEN INDUSTRIAL$(275) 2050.19 

21 BurftSng 8 Construction^) 1187.60 

22 Building Matte, i Mwchs{29) 1920.46 

23 Chemicals) 2441.06 

24 Diversified IndustrialstlS) 1465.63 

25 Electronic & Elect Equ*X36) 2338.28 

26 Engineerings 1) 2643.76 

27 Engtnaemg. Vahk*»04) 3239.18 

28 Paper, Pckg 3 Prtrrtir»gf?8) 2575.4 0 

29 Tertllge 4 AppareHIQ) 1169.09 


-0.1 2051.77 2067.13 2070.32 1928J30 4.17 1.71 
-OS 1196.47 1215.33 1215.94 898.59 3.55 1.47 

-0.5 193031 1955.03 196848 1671 .96 4.02 1.41 

+0.1 243S 17 24 50S3 2449.79 230936 4.15 1.45 
+0.6 145738 1475.80 1489.51 1751.95 6.92 1.61 
+0.8 2320.72 2329.68 2340.64 2101.15 3.35 148 
-03 2651.56 266437 2077.75 2107.59 3.09 2.46 
-0.83285.71 3281.58 3284.43 2536.16 3.33 1.72 

-0.5 2587J51 2595.31 2594.60 2890.37 405 1 .82 

-0.1 1170.08 11 7B. S7 1185.68 1469.84 6.10 1.16 


17.50 76.13 1141.96 
23.99 30.99 1011.48 
22.09 72.84 989.01 
20.77 80.14 1176.68 
1120 89.36 844.89 
25.23 63.97 1233.05 
16.40 72.32 1629.53 
21.84 101.71 1709.02 
1093 91.05 1093.10 
1758 51.71 727.33 


30 CONSUMER GOOOSH82) 3690.34 

32 Alcoholic Beverages! 8| 2730.45 

33 Food ProducersCSj 2558.06 

34 Household Goods! 15) 2729.99 

36 Health Cared 6) 1962.90 

37 Phairriac«ittcaJst14) 5721.31 

38 Tobaccog) 3602.33 


♦0.1 3688.34 37Z705 3709.98 3420.77 3.90 1.93 

-0.7 2755.39 2776.83 Z7B0.76 2876.00 4.64 1.63 

+OP 2554.21 2568.02 2573.03 2430.44 4.11 1.84 

+0.5 2717.30275621 2770.93 2538.47 3.74 2 25 
-1.1 1984.88 1997.69 201 1 .55 1939.76 3.03 1 07 

+0J 5703.19577001 5891.99 4697.22 2.99 2.01 
+0 1 3599.92 367128 3678.69 4451.45 720 2.13 


1608 12939 1388 98 

i asa 104.19 1005.08 

16.49 86.09 1174.11 
14.85 100.09 1064.56 
20.96 54.40 1210.41 
20.77 162.93 1973.74 
815 262.07 927.66 


40 SERVJC£S{254) 2595.97 

41 DetmxjTors(30) 2918.13 

42 Leisure & Holetef25) 3179.02 

43 Mediat45) 4372.15 

44 Retailers. Food! 15) 2034.67 

45 Retailers. General 5) 213231 

47 Breweries. Pubs & Rest 121) 3135.78 

48 Support SenncastSO) 2601.00 

45 TianaportOS) 25 31 10 


+02 2591.01 2600.57 2611 45 2110 55 2 86 198 

+0.62901.81 2899.40 2883.95 2604.38 2.92 2.02 
+0.6 3158.83 3173.12 3177.34 2472.16 2.75 2.03 
-02 4380.45 4414.03 4420 72 3345.07 2.09 2.04 
+ 1.6 2002.64 1984.51 2003.85 1900.01 3.86 2.29 

+0.2 2127.51 2143.76 2161.67 1718.07 302 2.08 
+00 3125.99 312403 31 19j60 2635.98 3.31 1.98 

+02 2595.83 2599.83 2599.53 1836.35 1.88 2.26 

-0.9 2553.36 2565.76 2590 A9 2220. 17 3.74 1.12 


22J32 73 42 1370.43 
21.15 79.68 1092.70 
22-41 173.08 1728.80 
29.24 91 89 160028 

14.11 63.74 1315.72 
19.96 63.40 1239 42 

19.11 68.29 1520 53 
29.37 47.97 1670.33 
29.92 82.14 1075.40 


60 UTTLmES(33] 

62 Etectr1crtyt121 

64 Gas Orstnbution® 

65 Telecofnmun«iitk)nsf8) 

68 Waterill) 

2330.98 
242a 15 
1298.15 
2003-25 
2161.71 

+10 2302.93 2302.52 2307.67 2478 34 
♦1 7 2387.16 238BJ92 239300 2804.07 
+0.5 1291.75 1298.15 1298J?7 1554.04 
+1.1 1981.00 197707 198905 2068.44 
+1 2 213800 2136.39 2118.53 2032.59 

5.56 

6.78 

923 

4.03 

6.44 

1.75 

201 

0.83 

1.53 

209 

12.01 167.56 1042.08 
6.32 429.17 1314 83 
1625 119.71 710.31 
20.31 50 32 93047 

a46 sm as iP2r>.6o 

69 NON-RNANCIALS4608) 

2048.38 

+0J2 204409 2057.19 2068.05 1819.81 

301 

1.82 

18.08 7703 158741 

70 FINANCIALS<1Q3) 

71 Bonks. Retains) 

72 Banks, Merchants 

73 tnsurartc«(2l) 

74 Life Assurancef7) 
77 Other FmartciaipO) 
79 PiapeftvtAI) 

329009 

4744.83 

3717.99 

1551.38 

3785.72 

2700.76 

1048.42 

+0.5 327308 3209.48 3319.74 2745.43 
+0.7 4712.57 473&07 4791 .87 3825.1 4 
+0.9 3684.52 3703.42 3721.46 3504.80 
+0.6 1541.55 1552-93 1560.70 1 389.77 
+0.1 3763.62 3780.54 3334 00 3310.69 
+O0 2634.23 2682. 1 5 2678.44 240&54 
-CL2 1B51.72 1654.97 1659.15 1367.86 

4.03 

3.83 

2.00 

5.42 

4.13 

3.96 

3.90 

206 

2.71 

2.81 

207 

1.78 

1.79 
106 

13.13 124.19 144902 
12.05 175.96 1588.21 
1508 95.60 1196.84 
10.18 79.70 1201.15 
15.97 151.01 1001.05 
17.67 8807 158803 
25.39 48 S2 1031.78 

SO INVESTMENT TRUSTSf1Z7) 

314322 

-0 .1 314a 71 3151.37 316803 2909.1 7 

207 

1.13 

4902 60.33 1106.70 

89 FTSE All-SharefSSSI 

1956.90 

+0J2 1 952.02 196150 1975.68 1721.98 

3.60 

1.91 

1707 72.82 1689.29 

FTSE Fledging 
FTSE Fledgbng ex IT 

1227.15 

124106 

-00 1229.91 123100 1233.76 107903 
-00 1243.08 1244.92 1248.77 1079.78 

2.80 

2.99 

0.65 
0 57 

ea?4 3001 1299.71 
7341 33.05 1316 48 

■ Hourly movements 

Open 9JD0 

1000 

1100 1200 1X00 1400 

15.00 

■*8.10 Ffigh/day Low/day 


FTSE 100 
FTSE 2SO 
FTSE 350 


3952.6 3958.9 3959.4 3957.4 3857.5 3957.6 39624 2966.6 2975.1 2970.1 39519 

4422L2 4421.5 4421.0 4419.0 4417.4 4417.1 4416.1 44ia 1 441B.9 4422.5 44T5> 

1972 3 1974.8 1974.9 1974.0 1973 8 1973.8 1975.8 19774 1980 9 1682.7 19721 


TVta of FTSE 100 Day's hgh: 430 PM Day's k?w. 8:32 AM FTSE lt» 1996 Wgh. 407J.1 (21/10/90 Law: 3K£' 3 naOi.-M) . 

■ FTSE 350 Industry baskets 

Ctoae Previous Change 


Open 9JX) 10.00 11.00 12X0 13X0 144X1 15.00 16.10 


Bldg & Cnstrcn 1172.5 11664 1165.4 1164.1 1162.3 1102.2 1155.9 1155.1 11564 

Phainvic«jlKts 5582.9 5596.6 5591.0 5501.5 5584.7 5501.0 5592.0 5S10.6 5633.2 

Water 2123.1 2124.S 2125.7 2124.5 212S.4 2129.6 2129 0 2137.0 2141.4 

Banks, Retail 4770.6 4703.0 4766.6 4768.0 4765.9 4773.9 4730.4 4797.0 4003.4 


1157.6 
5649 0 
2147 i 
4805.4 


1173.4 
5631 4 
2121. B 
4772.7 


-15.8 
+1 7.6 
+25.3 
+32.7 


For hjrtrwr inlormancm on the FTSE Actuarlas Share Indices please comae i FTSE Intemaboruil ^ 0171 448 1810 
The FTSE Actuaneo Shore Indices are calculated tn oeeordaneo with a standard set of cpxmd rules r-statHishea >+, croc 
Iniwnational in comuncOon with the Faculty ot Actuaries and the Institute of Actuaries, h FTSE lmem.it 7 on.il LrnZn ioS: 
AB Rights reserved. T Sector P/E ratios ^eater than 80 and nar eaveis greaw 
thnr 30 are not shown. I Values arc negative. Folowtng CanceBaten of the 
Wickes pic 1 5 net dividend, ai ac^ustment has Men made to the Total Return 
and Xd adj YTD tor Its associated Indices wtndh include FTSE 250 and Reudora, 

General. DELETIONS: A1 brighten. Anogan. Pendkalen (Uk). Regent Corp. Shaw 

fA.) a Co. Alliance Resources. Boustead, De/yn Group (FTSE Ftedqlingj. IN'I ERNAT10MAL 


TRADING .V.OLUME 


■ Major Stocks Yesterday 

Vd. 'ToWXi aiy‘3 
KXJs 


pree 


art 

A30A Gnsupt 

Abbey MaBoivVt 
AJben FWwr 
Afted Domecqt 

AnpSan Waloi 
Arucot 
Af|o Wkaglnr. 

Asnc Bra Fooost 

Assoa. Bm. Pats 

BAAd 

BAT Inas-f 

BBA 

fflCC 

BOCt 

BPt 

BPS into. 

BTT 

BTOt 

Bank al Scorlandt 
Baretiyst 
Baast 
BkM Circlet 
BoAor 
Boost 
8u»c 
Bnt. Aemspjcot 
Brtoh Akwayet 
6nMh Biotech 
Brnoh 
BnUsh Goa 
BrtUrfi Land 
Brtttai SteeH- 
Bund 

Bwmoh Castrolt 
Buloit 
i^obteS riflrat 
Crdwv Schwecpcerf 1 
Caraoon 

Carton Commit 

Chubb 

Coota vi»e«a 

Com m. Umant 

Contpaea 

Cookson 

CourmuMot 

Danoty 

Do La Rue 

Dmorrst 

B4Tt 

East M idUnd Etoct 

nil Iiiji an hi > i 

Eng Chrvo Ctova 
Enterpnce CHTt 
FKI 

Forotri * CoL I T. 
Goa AcddonrT 
Genaral Bectt 
data Welcomet 
Glynwed 
Oranodaf 
Grand UulT 

oust 

OreenaUi 
GflEt 
GKht 
Gwvasst 
HS»: |75p shs)t 


Hansont 

HwrOom CroolMd 

Hays 

FUbdown 

Hyoer 

■Ml 

iCIt 

knpenal Tobaccbt 
IndicapB 
Johraun Uaohoy 


KwA Save 
Ladbrakot 
Land Srasfllest 
Lapone 

Legal t Oeneratf 
Uoyds Abbey 
Uoyds TWt 
LASMOf 
London Becl 
Lofrtio 
LucoaVantvt 
MH’C 
MR 

Maria & Spencert 
Mcicurv Aasel Man 
Momson (Wml 
NFC 

PtalWeal Boniit 
NaDand Grvft 
National Power) 
i+oxrt 

Northern Bed 
Northern Foods 
Oranget 
Pearaonf 

P &o+ 

Wdngtont 
PowertSent 
Premier Famos 
Provident Financial 
Prudanhatt 
REXAM 
RMCf 
PTZf 
Rocol 
RaainKht 
Rank •Sroiiot 
RocMtl A Catmint 
Redandt 
Reed Irutf 
Rentokflt 
hautaref 
Bobs Hoyuef 
Royal S Son Aflce+ 
Bk Scot tond f 


. 

Salnsbury+ 
Scteodofst 
Seodteh & rjew.t 
Scol Hydro-Sect 
SctdlBh Pwwort 
Soars 
Seoawtak 
Sowam Trtjnrt 
Shell Tmii yp ori-t 1 
S«»»+ 

Slough Este 
SrtWh IWK.I 
Snvtn & NeohowT 
SmW Beochamf 
Smiths trots. 1 
Soulhem Elad 
South West Water 
Standard CJwia t 
Sterafkiuse 
T&N 

Tl Grt+mt 
Tanroc 
Tore A Cyfc-T 
TavWr Woodrow 
loWjVml Comma 
Tiseot 

Thames W elect 
Thom 
Torrtunst 
Ungote 

miwa t 

■Jraiod Blecuta 
Did News S MecBut 
LFnted UlStKof 
Vodawnet 
WPP 

Wteese* Waur 
Wh*ft««adt 

WUfljms Mdgs T 

riMB Caraan 

Wimpey 

Wobntoyt 
TorXahlro Elect 
Vartohirtr Water 
Zonecat 


3iC 

23.000 
9. tOO 

rr; 

1. aoo 
2.'5 
382 

3.700 
■12. 

1JWI 

6.700 
8.600 

2. TOO 
763 

1.100 

8.600 

662 

2jXW 

6.000 

6.600 

2.800 

4^00 

597 

3.400 
182 

2.300 
282 

1.100 

1.700 
2.100 
13300 

2.500 
573 

4.700 
13300 

367 

3. -I0C 

5.500 
936 

1.000 
T.700 
1.«W 

2.500 

1.700 

1.700 

8.400 
641 

4.300 
700 

1.100 

775 

807 

IfOO 

623 

90S 

2.300 

1.300 
B4J 

3.500 
6.008 

233 

837 

3.800 
1JW 

153 

3.700 

464 

2.600 

1.100 

123 

15.F00 

1.000 

827 

XT 

2-000 

J29 

i.BOQ 

4.100 

1.800 
284 

laotr 

38 

2JOO 

157 

8W 

3.400 
01S 

8.700 
651 
911 

4A00 

9.100 
142 

1.700 

3.700 
+38 
641 
734 

1.600 

973 

8200 

418 

1500 

580 

1.100 

2.400 
2.400 

2.400 

4.600 
816 
241 

1.600 
806 
761 

3.800 

28+ 

7-330 

53300 

532 

800 

837 

1.300 

1.900 

4.400 
3.700 

3.400 
5J00 
4.9M 

132 
835 
1-200 
885 
3.000 
800 
1-200 
a 3oo 
1.100 
705 
34 
3.400 

2.900 
301 
508 


-iSJb 

a. 

ii7b 

•41 1 


,U 

+0 

»*. 

476 

-1 

54Gb 
771 b 

.3 

165 

+1 

♦c; 


771 b 

-ib 

407 b 

-9b 

428 


358b 

• 1 

neb 

-1 

asrtb 

*7b 

881 

+1 

382b 

-4b 

578b 

-it 

J9Ab 

•8 

257 b 

+7b 

233 

*3 

961b 

• 10 

789 

♦J 

M8b 

•4? 


405. 

C24 

732 b 
1165 
SM 

22*b 

119 

191b 

4S*2 

170'+ 

237b 

lorjir 

149 b 
489 

S, . ! 

241b 

402 

117 

1M 

8401, 


•7b 
• 1 
+*b 
-5b 

-b 
• 1 
-3b 
-2b 
-1 
*3 
•'« 
+5 


•si* 


n 

226b -10b 

450 *16 

311b 
589b 
548b 

“S 

556b 
210 
150b 
732b 
379b 
964 
352 
864b 
JS«b 
612 
568b 
253b 
1185 
440 


-3 
-8*7 
•C 
♦ IT 

-ib . 
*4b 
-i - 

-ib - 
•4 b . 
*8 
-lb 

rti ■ 

-3 •••. 

*b : 

— »b 

4E. • 

-5 ■ 


1290 *15b 
381b 
80 1* 

128 
513b 
175b 
7W 
■WO 
789 
356b 


■4 

*4 

-3 b 


-7 

•«b 

•»b 


-ib - 


eoBb 
863 b 
318b 
199b 
716 
717b 
323b 
B26b 
390 
214 
609 

149 b 
248b 
427b 
201 
SI 5 b 
1129b 
161 
193 
701b 
181 
407 
660 
833b 
199 
185b 
760 
603 b 
171 
510 
867b 
460b 
484 

351 -lb 
1085b -17 

982b +14*2 
277 -b 
277 -I . 
408b «3*l 

711 +4I 2 

431 -ab 
1143 -9»2 - 

412b »1 

784 b +3 
254 ->! 

431b *6b 

aab *ib 


-zb 


-ab 

+i*s 

•28 


•4*2 

+4 

+i3b 

-3 

-4b 

-2b 
-1 
•ib 
-3 b 
♦ib 
♦18 
•ab 


-1 


soab 

364b 
384 
1395 
839b 
275 
314b 
B7b 
i’4 b 
eia 
1007b 
988b 
248 
4Mb 
187b 
758b 
820 
643b 


•10 

•b 

or 

•4b 

♦r 

♦7*2 

-8b 

ii 

+* 

-ib , 

-3 


97 

3.400 

S83b 

863 

-5b 

71* 

27Bli 

-1 

1000 

120 

+*3 

328 

568b 

♦ 1 • 

2.400 

90 

O 

347 

477 

•2 . 

1.100 

155 

-1 

70S 

m'j 

•1 

5.7DC 

332b 

•8b 

1.400 

SS4b 

♦ob . 

LCAffl 

346b 

-5 

1.900 

258 

1 1 

382 

432 

-ib ' 

509 

1291 

,;l< 

535 

208 

rS'l 

275 

673b 

.Jl 2 

■3.800 

570 

♦10*7 

8000 

537*4 

*1*1 

930 

220 

-*2 

100 

353 b 

r*~ 

14X10 

721 

•i »• w . 


1.600 

897 

1.700 

750 

757 

442 

2.500 


363 

IE' 

126*7 

477 

729*1 

620*f 

1872 


-ft 

•8 

-24 


Based on tracing volume (or awlcciton of 
major so&untwa dart thnugh the SEAO 
system wnanrlay uivfl 4 30pm T lnd)cj»a jn 
FT3E 100 index consMuent Al lmdRS am 
roumtoti Sv*»«r. ExMl. port at FT 
IniormoBoii. 









33 





















































34 


FINANCIAL TIMES 


FRIDAY NOVEMBER I 1996 


&30 pa October 31 


NEW YORK STOCK EXCHANGE PRICES 


M n 
N* * E 




23% 17% MR x 
Wig 33 AMP x 
97% SB MR 
60*2 371b ASA 
S3>« 38% Aim 
17% 12% AMMPr 
20V 13%A6Mb(J 
21 la^AEpBQM 
37V 37% ACE LH 

10V 9%A«Blth 

T\ 6*1 ACM SrOBB 107 It 

9*1 BVIOAMk 000 M 

ift eh Parnate: 032 4.1120 

187g 13% AonxMb 13 


148 1.7 26 764 (CSV 27 28V 
IJ» 10 180970 34 m 33V 

18 4823 84% 80% B4%+3% 

ISO 52 25 268 3ft 38V 38V -V 

ON 1.9 218067 50% 4ft 60% 
a* U 7 318 14 13V 14 

a» 20 78 32 17V 17V 17V 
41 IS 20 10V 18V 
058 IS 13 472 65V 53% 55% 

190 18 8 542x10% 10% 10% 

25 7% 7 7 

291 MV 8% 

13 7% 

49 18% 


a 

a 

♦i 

*% 


a 


172 2S 14 781 29 


7% 

18 IB 

28 28% 


27% Aeutti 

21% IZAcram 1001638 21% 20% 21% 

Z0% 17% tomjEjpf 118 24 1 103 SO 18% 10% 
21% 10*4 Mm 18 S457 1 7% 17% 

11% ftAdmop ------ 

26% 8% AM lac 
53% *1% Aegon 
6% 3% Arab 
70% 57% MUl 
40% 29% Atef 
21% 17%A6LHax 
31% 21% AimiED 
fCh S0%«rftC 
28% 18<2 Ann Fit 
25% 15% Moraine 
19% 13V JUH3M 
33% 25A9TS1 
30V 15% Amato 
22% 17% Albany Ira 
24% 14% Aim 
47% 32% MOB** 

40% SS% ABCUIAf x 
43% 31% Ann x 
34% 2a% AknAI 
86 37% AMSt 


-% 

♦% 

■ft 

*3 

a 


I8S4S7 17% 17% 17% 

016 1.7 8 78 9% 9 0% 

110 17108 1445 14% 14 14% 

145 18 15 109 51% 61% 51% 

3 147 4% 4% 4% 

080 U 88888 67% 88% 88% 

140 IS 172161 u40% 39% 40% 

1.06 60 17 180 021% 20% 21% 

088 28 3 9498 031% 30 31% 4-1% 

1.10 10 15 2284 50% 68% 

0J0 18 14 423 19% 019% 

36 104 23 22% 

180120 9 S3 16 14% 

728088 26% 25% 28 
020 19 7 571 21% 21% 21 

040 18 14 167 22% H% 22% 

123 1.7 5 465 16% 15% 18% 


st a 


136 18 20 222 45% 46% (5% 

136 10 17 104 40 30 30% 

160 1.7 76 5372 34% 34% 34% 

060 18 14 40(3 33% 33 33 

056 1.2 30 4004 48% 44% 46% 


65 38%AM*mn« 180 18 8 385 57% 58% 36% 


ft 

4% 

ft 

4% 

3 

-% 

-% 

ft 


21% 13% AtaAl 
31 28AUgP 
23% 10% AlogT 
30 18%/Uopca 
28% 14% Alan Con 
42 30ABagai 
28% 21% ASnce Cap 
13% lOAOwia 
39% 20% Alruf 
87 47% AI0S% 

30% 24% Almerica* 
10% 9% ABicr 
56% 37% AMs 
35% 26% AW dp 
S% 3% AhHOto 
77% 10% AWnmaA 
39% 26% Oral 
60% 49% MSB* 
34% 74 Aba Cp A 

6% 5*2 AmGnrtnc 
14% 10% Am facts 
9% 5% AraaGd 
62% 45% Antnc 
20% IftAmcmiM 
59% 47% touts 
"l 39% I 


I Amend 


010 17 22 5339 14%013% 14% 

188 58 16 2001 30% 29% 30 

164 3.1 15 307 21% 20% 20% 

140 2.1 18 2494 10% 18% 18% 

020 12 18 155 18 15% 13% 

152 1.7 24 3263 31% 030 30% -% 

103 72 13 136 27% 27% 27% r% 

011 14 75 13% 13% 13% 

120 12 12 61 039% 30 39% +% 

080 18 18 4009 85% 66 85% ft 

0.16 16 11 3868 28% Z7% 27% -% 

184 83 91 10% 10 10% ft 

8.78 1.4 13 5365058% SS% 56% ft 
1 10 38 29 1334 30% 30 30% -% 

17 1BQ 4% 4% 4% 

118 1.4 22 1060 12% 12 12% ft 

5 1370 32% 32% 32% -% 

080 18 19 3203 59% 57% 68% -1 

25 1B4G 20% 25% 26 *% 

142 78 395 8% 6 B 

028 18 17 07 14 13% 13% 

108 12 22 BOG 5% 5% 5% •% 

080 18 7 787 uB2% 81% 62% ft 

156 27 11 109u20% 20% 20% +% 
080 1.1 18 1093 58% 55% 55% -1% 
ZOO 4 2 15 1391 46 (7% 47% 


3*2 1% AnHOMs 

109 68% Ann8 
s 5V Am onp inc 
9% 8% AmRsXB 
*Z\ 24% l 


i AmSto 


IjjjC 

20% 19 Am Bra N 15H 28 15 16 22% 22 22% . _ 

44% 3ftAfl£Fu 240 58 13 5145 41% 41% 41% ft 

50% 38%AtnEd» 080 19 1312178 46% 48% 4ft ft 

39% 32% AmGad 130 38 15 2657 37% 37% 37% 

5% 4% Aid Gorki 038 78 307 5% S% 5% 

23% 20% AmWiftf 80628.4 10 173 21% 21% 21% 

24% lOAmHHto 176 3 4 11 121 22% 21% 22% ft 

66% 47 AmHong 184 27 2610455 £1% 80% 61% 

are 66.7 ib noo i% m% i% 

140 0.4 18 3436 U109 108 108% 

144 7.7 360 5% 5% 5% 

(144 4 8 6 124 9 B 9 

164 15 17 1177 41% 40% 41% *1 

21% 17% Am Mfear 5K 185 88 B 18 18 18 

22 17% Am Waff x 170 35 15 122 30% 20% 20% 

1DD 25 6 374 35% 35% 35% ft 
044 17 48 1789 084% 64% 84% ft 
48 604 37% 37% 37% r% 
2.12 38 13 4115 54% 54% 54% 

41% 34%AmuiHx 128 3.1 11 35 41% 41% 41% ft 

22% IBAnatak 124 12 13 313 2D% 20 20 •% 

280 14 17 4818 7B% 75% 75% -% 

110 18 10 27. 12% 12% 12% ft 

13 219 20 19% 19% 

0.12 15 3 910 9% 8% 9% -% 

1.88 35 14 550 46% 48% 46% 

130 15 80 1189 84% 63% 83% -T 

192591 28% 25% 28 *% 

096 4.0243 88 19% 19% 19% r% 

198 2 5 25 7085 38% 38 38% ft 

19 384 14% 14% 14% -% 

1X4 35 16 1782 n58 57% 87% +1 

35% 24%ApacheQrp 128 80 377323b35% 35 35% ft 

9% B% ApuMuiFx 0GB 65 236 9% 9% 9% -% 

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117% 95% CNAFn 8 344 98 97% 96 *% 

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130 17 aiZZB 44% 44% 44% ft 

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0X4 1.7 11 155 25% Zft 25% ft 

278 13 1359028036% 35% 38 ft 

4558 a 21% aft 

008 00 32 Z772 84% 02% 84% +1% 


34% 25% Madras Op On 10 101197 34 3ft 33% ft 
85% 48% IMdRx 203 30 13 2353x85% 84 68 ft 
39%21%Mra*ax 0X4 12 89188 38 37% 37% ft 

8% 8% IMHO 184 13 31 ft 9 9 ft 

87 44% Marcs 1.14 33 13 488 49% 48% 49% ft 

78% 96% took in 32 2614142 74 72% 73% ft 

oa 20 17 8316 11% 11% 11% 

140 00 24 308 6ft 49% 50% 


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78% 81% MM in 38 30 5741 78% 75% 78% *1% 

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Z1%15%M*E*t 002 38 97 47 20% 20% 20% 

7% 5% MW Cup 21 489 8% B% 8% 

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12% fttotodra 6 IK 8% 8 8% 

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18% 15 Mum 0X0 30 12 191 15% 

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172 10 11 1893 37% 37% 37% •% 

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in 2D 9 867 91% 51% 51% ft 

1 04 52 12 237 33% 35 3ft r% 

021 08 23 1384 3ft 34% % ft 

148 1.5 271890 30 27% 29% 

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001 72 15 363 4% 4% 4% ft 

on 23 52 51 35*2 35% 35% ft 

in 1.4 a 8779 83 81% 82% r1% 

IN 30 4678983 38% d34% 35% -1% 

300 32 7 1123 83% 63% 63% ft 


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182 33 10 2400 35% 34% Sft 
m 30 8 1813 41% 41% 41% 
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25% a%PUanMMG 1.10 45 13 zn 24% 2ft 24*2 

17% 10% Pin IMP 116 1.1 15 2715 14% 13% 14 

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1 40 30 a 6384 u38% 35% 36% +1% 

112 0 3 55 738 x45% 44% 44% ft 

160 10 15 740 40% 40% 4ft ft 

90 318 35*2 35% 35% ft 

148 I.D IB 166 47% 48% 4ft -I 

17% 13%ngn&Tdx 178 40 IS 214 15% 15*2 15% -% 

11% 8% fade Pd 132 11 17 8 10% 10% 10% ft 

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1.44 20 21 1118 71 70% 70% +% 

1.70 40 17 368 4ft 42 42% ft 

1.86 £4 13 1864 X 25% 25% 

187 73 10 708 23% 23V 23% -% 

036 09 27 4170 45 44% 44% -% 

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1.06 02 8 820 21 20% 30% +% 

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126 30 1 350 7% 7% 7% ft 

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172 18 13 1738 38% 36% 37% ■% 

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104 13 11 536 22% 22% 22% 
157 00 18 40103% 63% 63% 
137 28% 28% 26% 
40 9% 8% 9% 
117 7% 7% 7% 
85 13% 13% 13% 
246 10% 10% >0% 
283 7% 7% 7% 
11N 8% 8% 1% 
441 7% 7% 7% 

1.14 32 28 5197 35% 35% 35% 
140 34 30 624 17% 1ft Ift 
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120102 17 11% 11% 11% 

1.1B 33 IB 974 Jft 38% 38% 
132 TJ B 60Q 28% 25% 2B% 


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28% 19MBXP 

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58% 43% Rarer 
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78% 56 Ren* NY 

38% 22% Fkdan A 
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172% 133% RDutch 
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31% 22% RpduS 
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139 4.1 510 ft 9% 

75 1121 21% • 21 
120 1.8 19 1497 Bft 68% 
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138 1 8 7 249 24% 24% 
1.16 20 12 87 40 39% 

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1.12 21 11 1247 33% 52% 
102 3.1 10 BS7 32% 32% 

102 30 11 059*78% 75% 

fi 263 u35% 3«% 
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13 227 14% 1ft 
118 12 7 874 13% 13% 
156 21 12 260 26% 25% 
1.40 20 15 1544 Sft 58 
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174 32 18 1302 33 
m 6X 23 5190 29% 

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014 gj onoo 1% 1% 
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110 4X 4 158 2% 2% 

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118 10 15 242 11% 11% 
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338 90 39 26 26 

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103 12 89 12% 12% 

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128 21 1* 252 13% 13 

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EBS*4 13 252 2% 2% 2% 
EqtdttO* OWC3661 3% 3% 3% ft 
SOMbb B 536 2% 2% 2% ft 
ErlcnB 022 a 17178 27*2 26% 27% ft 

toad 18 2 6% 6% 6% ft 

EtmS*i 16 570 »% 20% 20% ft 

E W a 1757 13% 13% 13% 

Bt riM 45 K 14% 13% 14 ft 

Eriddtoc 11 IS 13 12% 1299 ft 

topadll 016 0 147 42% 42 42% ft 

EaopAn* B « 7% 7% 7% ft 


- F - 

FWBrp 16n00 6 6 6ft 

FrarCp OS 11 ill 17% 17 lft ft 

toataeri 002 551607 46% 44% 46% ♦!% 
FH»U » 5550 34% 33% 34% ft 

HWThfd 104 20 052 103 62% 62% 

«*» 0 262 A * A 

Rggta A Oat 24 62*5 10% 10% lift ft 
naM 57 1073 28% 26% 26% *1% 

All An 151 13 TlBBc5D% 40% S ft 
FaSttti 092 17 17S 29% 28% 29% ft 
Fdlm IS 141086636% 36% 36& ft 
Meant IS a 58 32U 32% 32% ft 
Raenr a 1764 38% 37% 36% ft 

fttoW 16 285 7% ft 7% 

FWta/BTl 22 119 8% 8% ft ft 

toatA 011 202549 BA 8% « ft 

FoaLB 011 191640 6% 6% 8% ft 

FtaatoA OI0 10 44 4 3R 3% ft 

At Ad 046 18 430 27% 27% 27% ft 

AtHtori 1.1812 W9 a% 30% aft 
Marie* OBB 14 395 41% 38% 41% +1% 
Rrisrfti OS 12 a 20% 19% 19% ft 


toy Aaw 080 021066 


39 39% ft 


064 £6 10 3497 25% 34% 24% 


15% 13%UtaaM| 096 69 83 *a 14% 74 14 

24% 19IWDomM OS 10 11 66 »% 20% 20% 

69 90% UtMoi OS 01 27 3784 38% 97% 57% 

40 32UU0XBD ZM 07 8 234 33% 32% 33 


40 32UUWBD ZS 07 8 234 53% 32% 
6% 4%lKdtadHtX (LS 17 W IS 6% 5% 
73% nVUMCydnrtd 042 11 13 13% 13% 


8 3%TCWEeto. OS M I R 4% 4% 4% ft I 

40% 29%TCFPene 076 10 18 336 3B%- 36% 38% ft 

9% smeWOonSOS 01. 2M 9% 9% 9% - 

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Z8%18%W&A$ 096 30 7 1H 25% 2ft 25% 

101% 74% TBW . ZA8 2J 12 1119 90% 90% 90% ft 

25% iftTuwnFd os oi -.«a%a% a% ft 

0% ft-IMyW 042 08 3 76 0% 6% 0% ft 

a 15%TWdyP1 is 69 4 17 17 17 ft 

52% 3BTa*ada IS 03 35 1500 42% 42% 42% ft 

15% 6% Turin 65 1108 12% 12% 12%- ft 

99%34%Ttotr OS Z1 16 8617 38% 37% 37% ft 

10% 6%D*ulWrr0S 04 15 10% 10% 10% ft 

2% 1%TCOad 10 119 1% 01% 1% ft 

27 » TaeoBwo* l.lf <0 14 2S3S 2*% 2<% »% ft 


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20% l1%U6Nr 012 07 B1188S 17% 17% 17% ft 

19% T4%USnfi OS 10 10 3280 19% 18% 19% ft 

36%l6%iento 82 1907 34% 33%. 33% ft 

29% l9%UMu 6 475 22 21% 21% 

aftzftsucp 090 32 i* 931 a% a% »% 

.46% 19% USSop 006 02 a 880 41% 41 41% ft 

1»80%UHAe ZS^ 1.7 19 180 13% 127% 129% +2% 
17% UUcMUr 092 90 S 68 15% 16% 1ft ft 

30% 14% Ootataf . 14 297 *4% 23% 24 ft 

«% SUriaAndd.a IS Sfl 19 4» 35% » 3S% ft 

20 17% UnteW IS 8912 SO 19% 16% 19% ft 

2ft 22%UdtoOp IS 18 11 407 27% 26% Z7% ft 

33% 27%uaaeri OS 22 16 5087 37% 36% 30% ft 

67 54% IMUMx 1.10 17 1611S a 62% 62% ft 

2ft 17% US tad 81934 ® 2fl% 25% ft 

37% Z7%XBNMx Z14 7.1 11 298* 30% 29% Sft 
23 1*% DEWtol 76 0916-16% 15% 1ft ft 


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40% 30%1ttn(|> 
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060 13 12 883 39% 38% 
1.16 40 10 1445 25% 24% 


1D% 8%D5LKkc OS 6J 0 71 9% 


272481 33% «% S% +1% 


62% 42%WaEmSA IS Z2 17 372 80% 00% 60% ft 
aft 27% TataWJ OS 20 1216516 30% 29% 30% ft 


23% 17% USX 11 
37% 24% USX US 
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30% 25% Wavp 


as ii a 902i 22% a% a% ft 

100 3J 10 2329 27% O 27 ft 
OS 10 04 S tft 13 1ft ft 
•1J0 80 12 1328 Z7% 27 27% ft 


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56% SftXra 1.18 Z5 42 72S 46% 4ft 40% ft 

47% 38% XtaCop 072 1.7 15 X 41% 41% 41% ft 

26% 20% Variate? IS 5.7 11 S3 22% 22% 22% ft 

53% 43%YMK OS 07 22 631 46% 4ft 48% 

3% 32mri 014 19 10 33 3% 3% 3% 

25% 5% MS 6 2402 13% 12% 18 ft 

28% a%2toto)lritx IS 17 36 87 27% S% 27% -ft 

7% 6%Mtatol 0.72100 106 7% 7 7 

22% T6%2are 012 08 15 IS 10 18 16% ft 

S16%2inM 040 10 S 218 25% 24% 25 

11% 10%2tolBFinJ IS 90 47B 11 10% 11 

9 ft&MtaT<A 084100 410 8% 6% 6% ft 


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■ ♦ aynttd. TO owtar report* rtap B u tsn to tato Acute 
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BEAU 83271 22% 21A 21% ft 

B—riCna 042 24 19 12% 12% 12% ft 
BateJery 14 145 12% 11% 12% ft 
BrildateR OS 184764 52% 51% 61% 
BHAftp ai215 SuT7% 16 17 *dk 
Bine 201396 6% 6% 6% ft 

Bflfl 0201221202 17A 17 17% +A 
BtatoyW 00811 10 17 17 17 
Brigaa 8029771 79 73 7ft -4 

Etomtx 01019 2151 16% 16 16A -+A 
BtarriCkg 1.18 s 6 W44U44H 4A 
BHCSolto 3811427 B4% 82% B% ft 
BorinwnS IS 175682u61%'60% 80tt ft 
Bmennt 032 222303 12% 12% 12% ft 
Bate 8 8 21 .308 31 2B% 29% -1% 

Bated 10 1640 6% 5A 5A ft 

Bated Tc 24 1363 16% 1ft 18% ft 

AsftWA 040 18 19 23% 23% 2ft ft 

BRCWdgi 60S 237 40 37% Sft 

BBBtocp IS 11 S 28% 29% 25% ft 

BTSNpng 046 73 A 3% 3% 8% 

Buffets 121174 11% 10% lOtf -A 
BtetotfT 7 58 5 64% 4% 

Bar Bmn 10 76 22 21% 21% ft 

feriattp 040 10 16 32% 31% 31% 


-a- 

61 App 33 5 2» 2U 2ft ft 

BKSare 007 20 IBB 29% 27% Sft 

Bam 5 52 3% 3% ft ft 

tomato i 254 % ji 048 

GriteBOOO 1613274 48% 46% 47% ft 

Grid Co 018 5 25 6% 8 ft ft 

BadBM 044 16 8 24% 24% 24% ft 

tonlffe 11 ISO 9% ft 9% ft 

tonfeftl 142513 5% 4% 5% -ft 

Bam* 4X0 35 US 23% 2Z% 23% ft 

Oku* Inc 5 684 5% 6% 5% 
Bngrete 2712060 23% 22% 22% ft 
toafekCto 3 2573 7% 7 7% ft 

total — 110 12 48% 44% 48% ft 

QDaanft 040 6 481 15% 15% 15% ft 

BWrigri. 012 41 1447 11% 11% lift ft 
BtoatA 040111 213 12% 12% 12% -% 

9W> Sera 86 21 7% 6% 8% -H 

BkBki 1 677 11% 11 11 

toedfete 19 423 7 dB% 6% ft 

GaddtPrqi OS 211180 23H 22% 23% ft 
fewfcsGya 7 58 3H 3% 3% 
feari# 024 122354 Sift Sft 
feanAP 016 10 14 9% 9% 9% 

B u a arn ana 0 882 IA 1% 1J2 ft 

ffllCriP 4 386 E24 5% 5% ft 

ttNISq 15 342 12% 12% 12% ft 


riD Cm 005 14175BB 25% 24% 25% -f % 
US Cart i7 S 19% 16% 18% 

Vac MB 000 » 18* 14 13% 14 ft 

UadBB 11 4238 9% 8% ft *ii 

U*pa&» OS 13 3» 27% 27% 27% 
taf Eta Q0I 25 1444 20% 19% 20% ft 
tocantp 5 te* 12% 12 12% ft 
Manor 407965 14% 13% ISA -A 
umarep 9 a n k n *2 
ItarriiMA 04*78 127 11%d1D% 11 ft 

tote OJ* 16 96* 32% 31% S% 
MeriC 193324 48% 47 47% ft 

UttriK 2091 7% 7% 7% ft 

ktoanW 201405 X X 35% ft 
McGBtovH 056 13 17 25 23% 23% 

McCradMr 056 42 447 24% 24% 24% ft 
Marin lac 010321068 1ft 1*% 15% ft 
Mriartdna 024 14 27 6 7% ft 

Marat Cp OIO 22 1450 22% 22 22% ft 
MUrfi 024 17 2033 8% dB% 6% ft 
MarmtoB IS 12 312 30% 29% 30% ft 
Urate* 3 738 12% 12% 12% ft 
Urate & 09613 no nf, 4® 4B]1 ft 
ktariri 01667 ?A 2 2 A ft 

Man Air B *90 ft 9% 9% 

H—AfalUB 19 732 ift 18% 19% ft 
MR On 2015528 50% 48% 5005 +00 
MkdnriE OS 17 IS 12% 12% 12% ft 
16008* 13127961)19% 19 19% ft 

Mcrecan T21S55 8% 7% ft ft 
Mognk a 548 8 ft 5% 

Iflcrit 381 7583137% 136% 137 ft 

MUMU 14 IS 10% 1ft 10% ft 
Mdatella 050 47 21 16% 16% 18% ft 

UfeacH 052 a 285 44% 43% 43% -% 

Won 61 40 39% 39% -% 

Itonricti OI0 19 S 12% 12% 12% ft 

MatoaTal 83698 1ft 13% 13% 

UtadanCUidia* M 23 10% 9% 9% -% 
ModkwMT 068 12 309 25% S% 21% ft 
MotaxA 008 22 303 33 32% 32% +% 

Meta lac OS 24 279 36% 35% 35% -% 
Moaccn 004 37 571 8% 8% 8% -% 
MrioaaPf X0S2 X4 48 28% S 28% ft 
MTSSy* 064 12 22 20% S 20% ft 

Mycojao 8 184 15% 15% 15% -% 


NACRe OS 9 4 34% 34% 34% ft 

MariifdCtl 072 9 233 16% 1 6% TB% 

tot Conpt as s Be 21% 21% 21% ft 

NX* SW 013 272823 22% S 22% +1% 
MMgtox 600 8 13 18 16% 18% 

ICC 045 25 ' S 54% 54% 54% ft 
Mere 184440 S 19 19% ft 
toator 0 BOB ii A 033 
toBCW 23HJ40B 45% 43 44% -1% 
toritoBaa 2S2061 24,^23% Sft 

touogea 51 396 21% 20% 21% ft 

Newtom o 12 IA iA iA 
toast Cp 00*18 7 ft 8% 8% ft 

toSSCBlA 85637 16% 15% ift ft 
tonrini 0J2 10 104 55% 54 55% 
Ndttm OS 18 9830 36% 85% S ft 
ttnriwi 18 73 17% 17 17% ft 
N Stalin 9 3 7% 7% 7% 


27*321 31% 30% 31% ft 13l 1B 334(169% 69 69% +% 


CTac S 

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s are 2*%a77 23% 

16 2 33% 33% 33% 


AMEX PRICES 


$:15 pm October 31 


ante m*. e in* rap mcna cm 
A rirMtei 16 31 15% 1ft 15% ft 
Mkhc 6 385 1% 1% !.« ft 

NptaU 0.05118 22S 7% 7% 7A *A 
Am hr Pa IS 4 . 7 -37% 37% 37% +%. 
Anted OS 33334 10% 9% 1ft 
An&ptf a 336 13 12% 13 ft 

AamMmA ' 95 25 4% 4% 4% 

ASBtaa Z0O 7 S 2ft 19% 19% 
Atttedi 13 S 4H 4% *8 ft 
AutitaxA 27 124 6% SA ft ft 
AubToM- 1 370 1% 1ft 1ft 
AataHR 48 10 3% 3% 3% 

BSMOeaan oio. 6 S 2% 2ft 2ft 
SadgerMr 000 15Z100 35% 35% 35% ft 
BHWTA4 004 22 92 Sft 3 3% ft 
BATaO* OS 8 IS 14ft 13H T3% -ft 
Bared 131 3 2% 2% 2%. 

Malta 040 26 11 24% 24 24 -% 
BffrtodA 10 M 25%d24% 24% -1% 
Bonn 9 36 1% lft ift 
Bean* OS 10 160 23 22% 23 

BraacmA 1JJ4 25 133(121% 21% 21% +% 

Cnrim 020 15 TO 31% 31% 81% -% 
ton tore 01* 35 8 11% 11% lft ft , 

CrirfRM OOl » 4fi 4% 4% -ft 
Crenbco OS 16 - 22 23% 23% 2ft 
CsvTctl «7 . 45 10% 10% lft -% 
CUBtotaC 93 33 IS 1% ft 


Stock SW. E 100* M* LaarCMMOMg 
CcocriFM 15 5 6% ft ft 

CroaaATA 084 18 394 11% 11 TT% ft 

CmwCA 040 1 7 13% 13% 1 3% -% 

CTMOCB 040 1 79 1413% 13% -% 

CUblc OS IB 16 20% 20% 20% -% 

cym 3 26 10 9% 9% -% 


Dtadt 

DuconvruQ 


81371 2% 2% 2A 
14 S 1ft 18% 1ft 


EaabCU 0*6 32 »00 13% 13% 13% JCtorp 965 3fl 3% 3ft 

Echo Bay 007 24610 8 Oft ft -A XriBkCp .15-184 3ft 3 

Bad En A 032 S ffl 8% 8ft 6% *ft AbyEei OIO* 3 17% 17% 17% 


Seta' Urn E MOa M* mttaeOas 
HaribCtr S 3 1% tf1% 1% -ft 
Hrico 010 9 17 17 17 17 

HrmrinA 9 296 6ft Sft Si -% 

RstrooCp 016 18 flOO lft 12% 12% ft 
btCon* i0D 3881 6% eft sA ft 
mno4 X X 14% 14% 14% 

Nta WO 234814 ift 15% 18% ft 

Jan 9*4 41 172 2ft 2% ft 

JECnp 965 3fl 3% 3ft +ft 

IftnXCp ,15 184 3ft 3ft 


5 72 9% BA 9ft -% 
IB OiOlOO 473 1 0% 10 10 -% 
000 1 57 ft 8 ft +% 
A 038 14 44- 46 4S 46 
1.12 12 113 13% 13% 13% +% 


Bate Ha 14 94 9% 9% 9% ft 

Etftape S 191 15%.1ft 1ft -% 

Friilrata 07018 4 26% 26% 26% -% 

Has A 270 16 46 51% 51% 51% -1% 

faraatLx 3.12SB S% 37% 3ft ft 

Praqaancy 12 32 9% 9% ft ft 

tam 080 16 2* 16% lft 16% 

GtartfFdAx 076 17 205 33% 33% 33% ft 

Etata 070 13 21B 13% 18% 18 ft 

GokfltaU 5 1M % ft % 


JferiXr 12089 % dft % -A NUMDsr 

Haabrex 040 18 871 3ft 38% 36% ft 1 WTtaA . 


KopEq 9 202 lft 1ft 15% ft 

UtoroB 006 27 25* 6% 6% 6% ft 
Lynch to 02013 8 64 60% 64 


7 74 42% 41% 4ft -% 
062 11 SIS 29% 29% 26% 

OS 4 S 7% 7% 7% 

0 794. 10 9% 9% ft 
160 8% 6% 6% 

I S 14 42 19% 19% 19% ft 
- 12Z1S % % % -ft 

• 4 35 7% 7% 7% -% 
058 53 2325 36% 35% X -1 


SWCntpx 222 7 4 40% 39% 40% ft 

Tai) Prods OS 13 70 7% 7% 7% ft 
TriStob 040 101451 35%d34% 34% -% 
Tbenocdcs 33 IS 20% 20% 20% 
TbwuteB 24 1121 30% 29% 30% ft 
TcdPNA OSOlX 145 9% 9% 9% •% 

TOam&ky 0 96 % d% % 

Troon 0 93 oft % % -A 

Tubes Max 51686 11% 10% 11 


UUFeodaA 033 56 50 1% 1% 1% ft 
UtftariB 020 80 X IB IS Iff 
US torid . 18 51 29% 29% 2ft 

VtapneA 1121735 32% 32% 32% ft 
VtacrerB 11*6072 S S% 32% ft 
IMRET T.12 17 172 12% 12% 12% ft 

Xyucnri . 2 187 1% dlA ft -A 


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to tan co n as S 829 17% 16% 17 ft 
CaanCp 231816 ft 7% ft ft 

tot** 225 1 820 5 *U 3 

MMOO 51 270 15% 14% 13 ft 

Cantata S 81 6% 6% 6% ^11 

tote* 31 2B7 2% 2% ft ft 

Canon be 0(52 25 X 96% 95% XQ -% 

CMtntoi OS 10 87 40% 40% 40% ft 

toaemta OS 15 13 13% 12% 13% ft 

Creasy Sx aiO 16 531 1B% 17% 17% ft 

Origan* S 539 8% ft 8% 

CBACp 15 2 9% 9% 6% 

Caterer 3722187 29% 27% 2ft +2A 
CnttRd OS 13 168(05% 25 a ft 
CPMSpr 9 5 17% 17% 17% -% 

Chanter 13 170 5% (0% 5% ft 

(Tartar 1 X 092 382799 43% 43% 43% 

ante) as 31215 4% 4% 4% ft 
OwddMn i 445 t) H % ft 

Owteb 13 S 13% lft lft ft 

Oremporaarara 28 117 5% 5% 5% ft 

CnyteTa 136011 19% 16% 19A ft 
Cfaxt to 6127135 23 21% 22% +1% 
tore Re IS 15 299 57% 57 67% ft 
CtaM to 025 X 50(09% 5ft 56% ft 
Ctaa • 117 a 16% 16% 16% 
Cbretoc 137146 19% Tft 19 ft 

Ctaotos 44718B* 61% 56% 80% *2% 

CtrBriipp 1.16 18 38101% 50% Sft ft 

Ctaantor 2 IS 2% 2% 2% ft 

CSQpf S 2718043% 41% 43% +1% 

cocararee is s 4 40% ao 40 ft 

todriVtann s 70 4ft 4 

Cepreato 162248 13 12% 12% ft 

Doom* S12M 31% 30% 31% +1 
Coherent 152153 3B% 34% 86% +6% 1 
Origan OS 4 140 20% 19% 19% ft 
COM 6a* IS 10 21 2% 22% 22% -% 
Conrir 024 12 587 20A » 20% ft 

COreatA O0B1S1304 14% 14% 14% 
CmtASp 00913*4863 14% 14% 1ft -ft 
C&naritareOre 14 801 n43tt 42% 43% +% 
toomnC 33 620 a 27% 27% ft 

Compute 1 807 4% 4% «A +A 

toreuaena 4622352 9% 0% ft ft 
Cbmahria 7 779 14% 13% 14 ft 
fcmtecm .10 531 13% 12% lft ft 

mourn 17 in 5% US 6% ft 

MUa aim 23% 22% 23% ft 
COOM as 16 2752 19% 17% 1ft ft 
copteta S3178 7A 7A 7% ft 
ton— rtOSO 11 94 31% 30% 30% -A 
Coumjto 14 3965 9% 9 3% ft 

Crater B 00219339 20% 19% 20% ft 
toaanscri 342*60 6% 6 ft ft 

Groteto 41 40 5% 5% 5% ft 

Core 35 228 U1B15A 16 ft 

Cytapd 3 505 8% ft 6% ft 
Q6k 11 1915 18 17% 17% 

toregan 42915 5% ft 5% ft 


- D- 

OSCCra BB31BD 14% 1ft 13S -tft 
Dart fine 013 9 2 * 94% 95 *4 

Oatritax 2 321 2% d2% 2% ft 

itaMreyw 13 909 17% 16% 17 

EUpttfiP 120 14 634 32% 31% 32% ft 

Dab&opiriUD 15 SB ft ft *A 

Driototo oaa 614 39% S 39% ft 

Defcriante 044 S V 21 20% 20% ft 

Ml too? 2332629 82% 78 S1% fti 

CH(dy - 033 17 390 42% 41% 42 -% 

DepGty 10011 789100% 4ft S ft 


- H - 

fedbrite 35 134 7% 6% 7% 
ttartaayri 00* 13 288 a 27% 27% ft 
Harper Gp 021 18 377 24 23% 23% ft 

HBOS Co 019 £513386 90 56% 59% +3 

Heritor 213514 44% 42% 43% ft 
I tatte r* 006 13 212 9% 9% 9% 
Wdnltri 18 109 9 6% 8% 

Hectagar 016 1 <72 ft <0% 3% 
Hrirbnj 10 51 10% 10% 10% 
Hatarffty 10 268 1ft 17% 1ft ft 
Hartril MO 173X13 20% 10% 20% ft 
Hniopta S 4894 23% 21% 23% 4-1% 

Item Bari O0B 11 X 25A 24% 24% ft 
Hretat 048 21 154 35% 35 35% ft 
HMJBX 000121 65 15014% 14% ft 

HUItete 000 13 2529 24% 23% 29% ft 
IticoCa an B 144 4% 4% 4% ft 
HufcNTecb 11 2*75 45 41% 44% 43% 

Hfbrttfnn 3 2 ft 7% 7% ft 

HyaOe» 27 8 3% 3% 3% 


- I - 

RlSja 16 518111ft lft 18% -1 

fibril 1 297 IS 1% 1% ft 

tan n e r y X 54 TlA 10% 10% ft 

taaanoaa 2 S32 3% 3% 3* *A 

Impart Be 027 10 216 19% 19 19% ft 
tal Ha* 502096 12% 11% 12% ft 

bferrata 2936516 22% 20% 22A *1i\ 
bfete 0* 13 352 15% X5% 15% ft 
UL0t4 020 1 537 IA ii 1ft 
hregrOar 67086 8% 8 8% 

UgbSyt 100 974 27 S 27 ft 

te—W 4 261 IA IA 1% ft 

btex 000 2366017 110107%1<B% -rS 
btari 22 567 1H 1H 1H ft 

brigriB 040101350 9 6% 8ii -A 

kterTri 18 672 15% 15 15% ft 

htarkaA OS 15 3M 17 16% 16% -% 

btgpb 164907 9% d8% 9% ft 

name 2 618 2% ft 2% 

blanks 42 5*2 B% 8% 8% 

kdaneta n <736 12% 11% lft ft 

UttyM 121280 a d1919% ft 

fereeare 005 22 2® a 27% 27% ft 

taBBito B12K6 22% 21% aft 
feomefit H i 13%413% 13% 
WAlado 1-tS 2T 14 200 01® 200 +1 


-J- 

JU State 16 IS 11% 10% 11% 
Jteanbe 02614 37 7 7 7 ft 

JLSbd OM 19*125 19% 18 18% 

JBhBWlfe r 13 13 12% 13 ft 

•fate** 13 440 11410% 10% ft 

JOtellM MB 78 2222 43% 40% 43* 4ft 
JSBFb IS 1$ 109 36% 36% 36% ft 
JDBUg 002 IS 258 15% 15% 15% ft 
JMta 116 11 4<t 10% BIO 10% ft 


-K- 

Ktote OCB 23 800 11 10% 10% 

tarancp 04411 to/ 11% 11% 11% 
Kiter» 08414 1597 28% 26% Sft ft 
«*»«* 0« 15 » 36% 35% 36% ft 

HAbreir 1032S 24% g% 24% ft 

"» 0 * ft A 

102114 Z7% 27% Z7% 
KtedriS ttW 62607 13% 13 13% ft 


63197 32% 31% 32% 4-1% 
2157736 9% d&% 9% 
62567 41% 39% 41 A +ZA 
56 162 8% 6% 6% 

10 4B 1% 1% 1% 


- o - 

OCMays <1 69 11% 11% 11% -% 

Otari* 152*006 16% 15% 16 ft 

OtfateA 22 99 14 13% 13% -% 

OMiaLo 048 21 32291)17% 16% 18% ft 
OtfabHfN IS 7 10 43% 43% *3% 
Often 152 122670 32% 32% 32l a ft 
OUltat IS M 52* 45% 46% 45)3 ft 
OH fee as 16 49 36% 38% 36% 
Orireiceip IS 12 356036% 36% 36% ft 
On Men 18 361 3% 2% 3 ft 

Oncta 47319® 42% 40% 42% 4-1% 

OrnStnea « 1532 21% 20% 20% ft 
OAatadv 099 10 496 11% 11% 11% 
toagonlfct 031 31 530 31% 30% 31 ft 
Ortxtet 7 464 8% 7% 6% ft 

Orirep T 116 3A 3* 3A 

OttkBA OS 34 78 15% 14% 15 
OriteabT OS 4* 7 12% 11% 12% ft 

Ottafhf IS 12 32 33 32% 32% ft 

OaMOD) 484482 45% 44% 45,% ft 


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Paccar 120010 *63 56% 66% 5ft ft 
PadMtap 0*1 10 479 9 6S 9ft 

PacHCraA 21 1510 67% 63% 66% 4-2 

PadOaB 2210202 70% 65% 70% -ift 
Pdtanabc 4« 8738 50% 48% 50% +1% 
Pate**# X02* 74 1690 57% 55% 57% 4-1% 
PBjmAra 36 702 l^i 13% 1® ft 
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Psnter* OS 14 2 254. 25% 25% 

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Prerant L OS 27 S 19% 16% 19% ft 

PcopfeMtrtS 19100**5% 2ft 25% ft 
PacptaHt CL67 10 667 23% 22% 22% ft 
Prertge 18 848 9% 9 ft ft 

Pawn 7.12 SB 3 S 32% 32% 
Pteanffeh 23 an 17% ib% 16JJ ft 
ftqaCpAm 112991 11% 10% 11 ft 

Ha— 045216 5 B% 6% B% 

PiEtnfe 30 4395 3 26% 27% ft 

PkxcreGp 040 35 T23 ?4 23% 23% ft 

PtaH 092 2 * au66% 66% 66% ft 
PtaaoS ai2 11 203 11 10% 10% 

Pbta 382764 17% 15% 15% -1% 

PHM» 977234 20%61B% 20% 4-1% 

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Put* OS 11 3 23% 23% 23% ft 

Pare® 29 16? 10% 10% 10% 

Paretos 0 679 ft 3 1 

fteaUfe ttU 7 56 11% 11% 11% 

PttaMC 200 741 81 76% 78% ft 

PritoB 1G3BSE0 19% 18% iH ft 

MfcPt* 2511091 17% 17% 17% ft 

ftkririli 14 74 lft 12% 12% ft 

PiWOpa 0341 818 38% a 39% ft | 
OrireQn OS 87 887 14 12% 14 

Otrikam 104*430 39% 38% 38% ft , 
tori Feed 020 22 192 36% 35% 38% +1 j 
Otantau 104019 20% 19% 20% ft I 
Grid— 13 S 21% 20% 21% 4-% j 
Qubfiaa 791530 67% 84% 66% *1% | 


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Mp 1 1232 461 4% 4% ft 

Raymond 010 9 4 17% 17% 17% -% 

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Rstafta 1012198 18% 16% 17% *1 
flKOtan 12 434 W% AS 19% ft 

ftapag* an 2 n 1|3 ft is -■« 

RapteW 1227*45 31% 30% 30}i -A 
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teaoxri 64 411 7% 7% 7% 4-% 

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rasnt ai2ii in 4% ft 4% ft 
flwsatet 082 91106 17% 17% 17% ft 
RMS OS 179915 42 40% 41% 4-% 

Hcrnma a wee w 15 % 15 % ft 

PPM be. x 052 172341 16% 10% 16% 
HpoRte 101597 7% 7 7%-% 


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SrikMfll 42 19 39% 30% 39% ft 
Sanaana OSSO 213 lft T3 13% 
SdriifepArilS 18 271 21% 20% 21% 4-% 
5a9yiB ««« 50*2 47% 49% *2 
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SEtaCp OJS 7 866 10% 09% 10 

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SaritoU IS 27 135 3SA 35% 3SA ft 

SB Cp 024 17 117 20% X 20% 

SaMaB OS 8 118 2A 2% 2 A ft 

S ateetB* 1.12 9 m2 3S> X 34 34% -% 

Srejures 31 1*96 14% lft 14% ft 
Sreiuol* 5 487 2A 2% 2ft ft 

Srevlach 1 158 3 2% 3 *% 

Sarenarai 022 15 2 15%tf15% 15% 

Ebrita 004 a 1104 *8% *8*4 48% -% 

SUTcririr 15 312 7% 7|i 7% •% 

Sbonmeret is 510 19% 18% 19 

SiOwbltP 36 375 18% 18 18% 

9gmAJ 044 20 2843 58% 5ft +A 

Sgmana 753740 7l 2 7 7% ft 

SaortlBc on 11 X 26% 2S% 26% 

SBenVGp 62359 17 lft 16% 

Starecr 040 12 270 10% 9% B% -% 

SmlbTadi I jiOO 1,», 1,'. ift ft 

SBdMd 23 363 SO 2ft 29% -% 

SonwaraP 0 549 ft ft ft ft 

Soorm OS 121434 Sft 83% 38% ft 
SpriOriA 020229 292 6% 6% 8% ♦% 
Spygtaa* 44 3*59 I2%tf11% 12% +% 

St JudaMd 040 2012692 39% 36% 39,'. ft 
» PauSc a 048 S 303 26% 28% 29% 
Statdre 3622719 16% 13% 18% 
Statute! 7339935 35% 32% 32% -2% 
Srilricre 51138 12% 11% 12 *% 

Sari Tee OIO 12 264 13 12% 12% -% 

SbddyUSA OS 010*3 2% 2% 2% 

SUM 8 756 16 13% 15% ft 

Stated 1.10 35212 1ft 18% 17 -2% 

Sbntegb 0 571 1% 1% IA ft 

SbtcDy 4435042 15% 17% 17% ft 
BtaVtar 005 a 4X17 S 26% 2B|2 
SriBmD 080 14 S 12 11% 12 
SuatemBOBO 8 2* 25% 25% 25% 
SrimkTb 116750 5% 5% 5% +24 
Son Sport 2 5 1% d1% 1% -% 

SunMC 2537130 81% 58% 60% +1% 
SUM Ha 245 24812A3 11% lft ft 
Stallra 001 27 266 22% 22% 22% ft 
SytaMbC 18 T7a 17% 17% 17% ft 
Symnree M2225 11% 10% 10% •% 
synriky OS 12 56 lft 15% 18% 
Bynate 78 2H 37% 38% aft ft 
Syagfirit ai0 168934 12 11% 11% ft 
syatansco 22 399 14% 14 14% ft 


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T-CalSc 4 383 2A 2 2 

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TBCCp 11 451 7% 0% 8% ft 
TM tobta 058 193095 27% 28% 28% -% 
TOGpA 4795694 12% 11% 12% ft 
IWfiBto S 3240 25% 25% 25% ft 
Taanreab 240 ID 40 54 53% 53% ft 
TBtoteC 32 143 IS 14% 14% -% 

Trintos 141928 21% 2D% 21 ft 
Trial* 8110906(06% 84 85% -ft 
TahmCp OOl 21 613 12% lft 12% -ft 
TabuTac 241799 21% 20% 20% ft 
ToreRlADA OS 275450 4ft 40% 41% +1 
3Com 58445*1088% 85% 67% +1% 


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TJta* OS 13 83 S 19 19 -% 

Todrwa an w «i 11 10% 10% +1 

Tokyo Ha 031 1 9 2 55% 55% 55% -% 

Tam Brawn 145 522 lft 18% 18% ft 
TafcAtft 1273 10 «% 6% -I 
TcppaCa OS 22 5027 3%(052 3}] ft 
ItataHHd 3 237 8 7% 8ft 

Tnnaeanl 12 85 5% 4% 5 -% 

Ttata* IS 10 856 49% 4ft 4ft 
Iriabta 2821922 14% 13% 14% -% 
Tluarim 78 sn 3% ft ft 
TrurecctecC 096 18 68 22% 22 22 -% 
Hang Lab OS 32 740 6% fi% ft ft 
iy*RM ai2 332152 30% 29% 29% -% 


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Untetia 0*0-12 4 2ft 2ft 22% ft 

Untag tt12 21 340 27% 2B% 27% ft 

IMMi ZS 15 10 52 51% 52 ft 

IB Bare* IS IB 1599 40% 39% 39H +A 

US Energy 782 84 15% 15% 15% -% 

USTfebet 3079760 98% 61% 62% -3% 
USSm* 4 205 3% ft 3% ft 

U6 Tat 1 IS IB 172 an 82% 82% ft 

USTQxp OS 14 370 18 17% 17H ft 

UabMad OS 13 355 13% 12% 13 ft 

UM Tata 050 22 13 68 98 88 

U6h 7 720 4 3% 3% ft 


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va ta w al 040 16 2D 34% 34 34% 

Wfidtos 77 *n Ift 18% 18% 
tartrei 036 6 51 22 21% Sft 

Vreiltax 85687 22% 22% 22% ft 

totena a 67 33% 83% 33% -% 

tour S 954 1ft 18 lft ft 

Vfcopffet ai2 22 387 14% M 14 -% 

toreriglc 461030 0% ft 8% 

«flTate 24 6475 17% 16% 17A -A 
WwB 000 7 582 20% 20% 20% ft 


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Wxgtob 36 4994 23% a% Z3% ft 
IfcrarEn 009 17 31 17% 17% 17% 
Wren ita d i 39n«&ul2% 10% 12% +2% 
MfeMUx 092 14112330*3% *2% 42% -% 
tonakalA OS 12 Z10Q 21% 21% 71% 
tonaumos 17 2* 19% 1919% ft 
WMO 248 10 167 51% 50 5ft 

totauBnc 002 X4 K 51% 50% 51% ft 

toQEM 181210 26% 2ft ZB% ft 

WSSariA 34 664 31% 31 31 ft 

llffeiitb 104 121721 67% 68% 87% +1 
te ffluwi 1351505 2B% 27% 27% ft 
totehanl OS 16 13 12% 12% ift -ft 
MxMM» Z7D46072 24% 24% »% ft 
Wtrttdnd! 048 2024884 20% 20% 20% ft 
WPAORx 023 20 22 37% 38% 37 ft 
WteBWGtiBM 0 S 34*8 22 % 21 %»% ft 


-X- Y-Z- 

Mtof 2017397 33 31% Sft 

Mran 87835 21% 20 20% ft 

»»■ teP 43398 3ft 3)3 3% 4* 
tebore OS 79502 18% 13 13& ft 
tokffedi 21 997 9% 9% 0% +A 
aatateb 1.7G 13 IS 91% 90% 91 ft 








WORLD STOCK MARKETS 

Dow flat as 
tech stocks 
move higher 


* FINANCIAL TIMES Friday November 1 1996 

Accolade, then Pharmacia takes a beating 


AMERICAS 


Most US share indices were 
flat in mid-session trading, 
although the technology sec- 
tor continued to show 
strength on the heels of the 
declines seen in the early 
part of this month, writes 

Lisa Bransten in New York. 

At 1 pm. Don Jones Indus- 
trial Average was 1.12 higher 

NYSE volume 

Daify [munonj 

500 



Average daily 
vokrrm 1395 
34S.135.000 

IB 21 22 S3 24 25 SS 29 3031 

Oct 1996 


at 5,994.33, the Standard & 
Poor's 500 rose 0.40 at 701.30. 
and the American Stock 
Exchange composite added 
1.62 at 566J91. Volume on the 
NYSE came to 267m shares. 

Bonds provided support 
for shares, firming in morn- 
ing trading ahead of today's 
figures on October employ- 
ment business activity. 

Technology shares were 
one area of relative strength. 
The technology-rich Nasdaq 
composite advanced 5.78 at 
L212.01 and the Pacific Stock 
Exchange technology index 
was 0.6 per cent stronger. 

All of the four largest com- 
panies on the Nasdaq posted 
gains, although there were 
losses among some of the 
more volatile Internet-re- 
lated companies. Netscape 


Mexico rebounds 


MEXICO CITY rebounded 
after an initial slide. It was 
almost 1 per cent ahead by 
mid-session as buyers 
returned to snap up stocks 
that were thought to have 
been hit too hard in Wednes- 
day's tumble. 

The IPC index was up 
31.00 by mid-session at 
3,193.49. 

In a rebounding construc- 
tion sector, Tribasa headed 
the gainers with a 1 peso rise 
to 18.50 pesos while Geo rose 
1.50 pesos to 35.00 pesos. 

SAO PAULO was lower as 
Investors awaited details of 
an airliner crash in a 


densely populated area of 
the city. The aircraft, oper- 
ated by Brazil's TAM airline, 
was reported to have been 
carrying at least eight execu- 
tives of the Unibanco private 
bank. TAM preferred shares 
tumbled 24.1 per cent and 
the Bovespa index was 578 
down at &L584. 

CARACAS fell 2.2 per cent 
on profit-taking in spite of 
Wednesday’s approval of the 
privatisation law reform bill 
which opened the way to 
next month's CANTV share 
offering. The IBC index was 
130.82 weaker by mid-session 
at 5,876.90. 


Rand helps S Africa ahead 


A tururound In the rand, 
which rebounded from fresh 
morning lows against the 
dollar, provoked an ava- 
lanche of support in Johan- 
nesburg for rand hedge 
stocks and quality blue 
chips stocks. 

Industrial shares were 
higher, helped by the firmer 
currency, while golds, 
regarded as oversold, moved 
ahead in spite of a weak bul- 
lion price and a softer rand 
gold price. 

The overall index ended 
83.5 up at 6.975.3, industri- 
als gained 84.5 to 8,209.2 
and golds rose 24.2 to 
1,732.3. 


Industrial shares led the 
improvement with some 
stocks quickly regaining 
ground lost daring the mar- 
ket's rand-inspired decline 
on Monday and Tuesday. 

The banking sector also 
found favour. Standard 
Bank regained the R5 lost 
on Tuesday, rebounding to 
R180. Nedcor jumped R3 to 
R68.00 while First National 
edged up a more modest 5 
cents to R25.75. 

Anglo American was tar- 
geted by futures arbitra- 
geurs, gaining R3.25 to 
R282.20. while fellow min- 
ing heavyweight De Beers 
rose R2.50 to RI38-50. 


Communications, which 
makes Internet software, lost 
52%, or 5 per cent, at $44, US 
Robotics, a computer modem 
manufacturer, shed S2%. or 4 
per cent, at $68% and C/net. 
an Internet content com- 
pany. fell by $ 1 %, or 8 per 
cent, to $15%. 

Elsewhere, The Gap rose 
$1%, or 5 per cent, to $28% 
after announcing that its 
board of directors had 
approved a buy-back of up to 
30m shares over the next 
three years. 

Pharmacia & Upjohn fell 
$2%. or 6 per cent, to $35% 
after it reported third-quar- 
ter earnings were even with 
the period a year ago, and 
warned 1997 profits would be 
about 10 cents a share below 
expectations. 

Meanwhile, Centocor. the 
US biotechnology company, 
added $2, or 7 per cent, at 
$28% after reporting a loss of 
2 cents a share, a cent less 
than analysts had expected. 
Shares in the company had 
fallen nearly $10 since the 
start of the month as inves- 
tors anticipated poor results 
from the company. 

TORONTO was firm at 
mid-session with the TSE-300 
composite index 5.17 higher 
by noon at 5,595.98 in vol- 
ume of 52.7m shares. 

Bre-X Minerals fell for the 
third straight day, down 45 
cents to C$21.95 as Indones- 
ia’s director general of min- 
ing was reported as saying 
that his government was 
still withholding contracts of 
work related to the Busang 
gold find. 

Molson picked up 5 cents 
to C$20.15. Its 40 per cent 
owned Molson Breweries 
reached an interim agree- 
ment with Coors Brewing 
over the licensing of Coors 
products in Canada. 


It was a quiet day for most 
bourses, but individual com- 
panies were rewarded for 
performance or punished, in 
some cases severely, for dis- 
appointing the pundits. In 
one case, that of Pharm- 
acia & Upjohn, a morning 
accolade was followed by an 
aftern oon b eating. 

STOCKHOLM, originally, 
said that Pharmacia, the 
SwedishfUS drugs group, 
had reassured the market, 

posting earning s in line with 
expectations after a profit 
warning which produced a 
severe drop in the share 

price about three weeks ago. 

There was a parallel story 
linking the group's doxorubi- 
cin bladder cancer drug with 
a possible BSE treatment 
and the shares hit SKr251. 
up SKr8 at best 

However, an analysts' con- 
ference call seemed to 
change the mood. Mr John 
Reeve of Paribas said that 
owing to a smaller contribu- 
tion from currency earnings 
this year, he had trimmed 
his gamings forecast for the 
group from US$2 JO a share 
to $1.90. The shares ended 
SKr 13.60 lower at SKr229.50. 

One beneficiary of all this 
was Astra, the other big 
Swedish drugs group, whose 
A shares rose SKr5 to 
SKr302, most of this In the 


Pharmacia &- Upjohn 

Share price (SKr) ■ 

zsi — 



last 10 minutes of trade. 
With Volvo B reflecting a 
better feeling about car- 
makers and SKriL5G higher 
at SKrl36.50, the Affars- 
vftrlden General index rase 
8.6 to 2,139.3. 

PARIS put up the best 
senior bourse showing after 
French bonds responded to a 
combination of a record Sep- 
tember unemployment rate 
of 12.6 per cent, a 5 basis 
point intervention rate cut 
and European Union accep- 
tance of the French govern- 
ment's plan to use a special 
France T616com dividend 
towards reducing its 1997 
public deficit. 

The CAC-40 index rose 
15.75 to 2,140.51 in turnover 
of FFr725bn. The big index 
winner was LagardSre. up 


FFr6 to FFr161. 50 for a 
two-day gain of 7 per cent as 
worries over its Thomson 
acquisition subsided. Among 
the losers, Euro Disney shed 
50 centimes, or 4.7 per cent, 
to FFr10.05 ahead of its 
results on November 14. 

Elsewhere, LVMH rose 
another FFr28 to FFr 1.171 
following Wednesday's bid 
for a majority in DFS of the 
US and Roussel-Uclaf closed 
FFr25 higher at FFrl^353 on 
reports that Hoechst, its Ger- 
man parent, might buy out 
the minority at FFn.600 a 
share. 

FRANKFURT improved a 
little in the afternoon, 
encouraged by gentle recov- 
eries in the dollar, bunds 
and the Dow, The Dax index, 
after an Intraday low of 
2,655.96, closed 6.68 higher at 
an Ibis-indicated 2,671.40. 

The automotive sector was 
mixed, with the truckmaker 
and engineer MAN down 
another DM5 to DM371 on 
the problems at its end of 
the industry. 

However. Volkswagen, 
named by Merrill Lynch as 
its Global Focus One stock, 
rose DM5.80 to DM603.S0 
after Wednesday's DM4.50 
gain. 

A former favourite was 
not so fortunate. SAP, the 
computer software major 
which slumped following a 
profit warning last week. 


FTSE Actuaries Share indices 


Oct 31 THE EUROPEAN SERIES 

Haoiy flanges Open 1030 11.00 1200 13.00 1400 1S0Q CMe 

FTSE BmSaft 100 175040 1745.45 17 47 .28 1748.02 1747J0 174057 174730 1747.44 

FTSSeumCraBtaW 180058 180047 1803.83 18043Z 1804,45 150S82 180017 1606.77 

Oct 30 Oct 28 tttffl 0025 03 24 

FTSE EMM* 100 1754S7 175014 1775.01 176058 1772.46 

FTSE Euranek 200 1811 JJ5 1812.44 183223 1621.87 182024 

Bex ota lOttQMOHfc WMn HD - 173087; 309- 1007S7UH«r HO - 174LB1 200- 18010. T ML 
c Fro mwana uom whiom kwh* 


dropped through the DM200 
level, the preference shares 
shedding DM6.50 at 
DM198.40, down more than 
30 per cent from Its 1996 
peak in less than a fortnight 

ZURICH featured a turbu- 
lent ride by Swissair. The 
shares jumped to an early 
high of SFr 1,008 as Sabena 
said that it had reached a 
provisional pay and condi- 
tions agreement with its 
trades unions, but pulled 
back to SFr9S0 as the Bel- 
gian airline's pilots staged a 
short-lived strike In protest. 

By the close. Swissair was 
SFrl weaker at SFr985 as the 
market absorbed comments 
by Sabena's chief executive 
that the Swiss flag carrier 
might write off its 49.5 per 
cent stake in the Belgian air- 
line. Swissair said that no 
decision would be made 
before the end of this year. 

The broad market made 
little progress and the SMI 
inripy closed just 2.2 higher 
at 3,725.3. 


. Sulzer, the technology 
company, closed SFr 12 
higher at SFr670 as Investors 
took the planned spin-off of 
its Elma Electronic subsid- 
iary as a sign that the com- 
pany was willing to restruc- 
ture its operations. 

Adecco, an outperfonner 
since last week's strong prof- 
its from Manpower in the 
US. gave up SFrll to SFr355. 

Among second-liners, Stra- 
tec put on SFr65 to SFrl, 645. 
UBS, which initiated cover- 
age of the stock with a posi- 
tive recommendation, said 
that it was one of a small 
group of medical technology 
companies distinguished by 
powerful sales and profit 
growth. 

MILAN was lifted at the 
close by strength in the lira 
and bonds. The Comit Index 
eased 1-28 to 603.85, but the 
real-time Mibtel index fin- 
ished 38 higher at 9,626. 

Tim. the cellular telephone 
company, rose L90 to L3.128, 
encouraged by nine-month 


results and news that it was 
to buy a 49 per cent stake in 
Stet Mobile Holding, which 
provided a potential foothold 
in France. 

Stet slipped L43 to L5.259 
following reports that its 
managing director, Mr 
Ernesto Pascale. was under 
Investigation In a corruption 
inquiry. 

Eni, the energy company, 
accounted for almost 25 per 
cent market's trading vol- 
ume, edging down L5 to 
L7.256. 

AMSTERDAM seesawed 
near the close, ending with 
the AEX index Just 0.07 
lower at 577.02. Royal Dutch 
was a weakening influence, 
the shares falling FI 5.80 to 
FI 280.20 after third-quarter 
results which were seen as 
disappointing. 

There were no apparent 
surprises from the paper, 
office supplies and printing 
equipment group KNP BT. 
but a third-quarter profits 
decline still left the shares 
down 60 cents at FI 37.40. 

ISTANBUL fell 2 per cent 
on profit-taking In state- 
owned companies and the 
energy sector, and the IMKB- 
100 index finished 1.686 
weaker at 82,006 after reach- 
ing an all-time intraday high 
of 85,753 during the morning. 

Written aid edited by WHBam 
Cochrane and Michael Morgan 


Nikkei takes its losses into third straight day 


ASIA PACIFIC 


A bout of Index selling just 
before the close extended 
TOKYO'S losing streak to a 
third day with the Nikkei 
average breaking down 
through the 20,500 level, 
writes Gwen Robinson. 

The 225 index fell 214.81 to 
20,466.86 after moving 
between 20,449.99 and 
20.738.57. The broader Topix 
index of all first-section 
stocks declined 12.33 to 
1,550.55 and the capital- 
weighted Nikkei 300 lost 2.64 
to 290.44. 

Volume rose 252m shares 
to an estimated 280m. 
Declines led advances by 748 
to 308 with 171 unchanged 
and, in London, the ISE /Nik- 
kei 50 index rose 2.87 to 
1,410.81. 

Traders noted continued 
selling of blue chips by for- 
eign investors, particularly 
high-tech issues, on con- 
cerns that the recent 
strength of the dollar against 
the yen would hurt their 
yen-denominated assets. 

The forthcoming long 
weekend in Japan, where 
markets will be closed next 
Monday, also dampened 
investor activity. However, 
analysts argued that the 
main factor in Thursday's 
drop in stocks, a late-after- 
noon surge in futures-led 
selling, did not reflect senti- 
ment. Investors, assured of 
continuing low interest 
rates, were continuing to 
redirect their funds toward 
thp booming bond market. 

The slow trading, the pro- 
fessionals added, was due 
mainly to uncertainty over 
the domestic political situa- 
tion and the US presidential 
election next week. The 
LDP, which emerged as the 
dominant party from the 
October 20 general election, 
is trying to cobble together a 
coalition before an expected 
parliamentary session next 
week to confirm the prime 
minister. 

Most Industry sectors lost 
ground On the broad range 
of index-linked selling. 


StA foreign 

Shan' price & index (rebased) 

120 — : — ■— 1 — : 

1 SUIon** .. 


Straits Times 
Industrial 


Jan -1SBS 

faro* Os UH i us i 'n ; 


Among technology stocks. 
TDK lost Y70 to Y6.680. Mit- 
subishi Electric fell Yll to 
Y659 after a 1996 intraday 
low of Y655, Okl Electric fell 
Y8 to Y634 and Fanuc, which 
lost Y15Q to Y3.650, also 
marked new lows for the 
year at Y633 and Y3.620 
respectively. 

Japan Airlines and All 
Nippon Airways both ended 
at their 1996 lows. JAL. 
which had just announced 
poor first-half earnings 
results, fell Y30 to Y650. 
while ANA declined Y12 to 
Y949. Selling also hit car- 
makers, Toyota falling Y40 
to Y2.690 and Suzuki closing 
at its low for the year, down 
Y30 at Y1.160. 

In Osaka, the OSE average 
dropped 124.59 to 2L236.65 in 
volume of 23.97m shares. 

MANILA rose 1.3 per cent, 
lifted by bargain hunting in 
blue chips with good nine- 
month earnings. The com- 
posite index rose 36.70 to 
2JH54.00. Ayala Land, which 
reported a 34 per cent rise in 
nine-month profits, saw its B 
shares 50 centavos higher at 
28 pesos. 

Other winners included 
San Miguel and Petron, up 1 
peso to 47.50 pesos and 20 
centavos to 7.70 pesos 
respectively. Turnover was 
heavy at 3.6bn pesos, 
prompting some analysts to 
say that foreign Investors 
might have returned. 

KUALA LUMPUR'S blue 


FT/SAP ACTUARIES WORLD INDICES 


Ttvo FT'S&P Actuaries World imfices am owned by FTSE International Limited, Goldman. Sachs & Co. and Standard & Poor's. Tin Indices ore compiled by FTSE 
intCTTMiionji and standard & Poor's In conjunction with the Faculty of Actuaries and the Institute of Actuaries. MatWest Securities Ltd. was a co-founder of the Indices. 
NATIONAL AND 

REGIONAL MARKETS ■ WEDNESDAY OCTOBER 30 1BB6 — TUESDAY OCTOBER 29 1096 DOLLAR INDEX 


REGIONAL MARKETS 

Figures m parentheses 


Airttiawi |7fl» . .. 

Austria <241 

Belgium |27» 

Braid i?81. 

Canada 016) 

Pwunari* f30i 

Fi/d.wd i?3> 

f ranee i*J3l 

Gnimory (Mi 

Hong K<x\g i09l 

indorcSKi <2?i 

Irctano PCt 

Italy |5S1 

Japan IJEtOi 

Malaysia (lOr> 

i27) 

NemeHand <161 

Now ZiMland »i5i 

Norway (35) 

PMippwra iCT) 

Singapore 1431 

South Africa (44). 

Spa-n OH . _ 

Snooon |48i 

Switrertand |37) 

Thailand i4Sl 

United Kingdom (213) ... 

USA <tJ3) 

Americas t.TMJ 

Eitfwpe (7iBi 

Nordic (1361 

Pacific Basin i876) . . 

Euro- Pacific |1594) 

North Aiwnco (739] 

Europe £*. UK (505). .. 
Paata Ex. Japan (3961 .. 

World Ex. US H609) 

world E." UK 12219) 

World Ex Japan (1952). 


us 

Dotar 

Index 

Day’s Pound 
Change Sterling 
% Index 

Yon 

Index 

DM 

Index 

Local Local 
Currency *6 chg 
Index on dav 

Grass 

Div. 

Yield 

US 

Dollar : 
index 

Pound 

Sterling 

Index 

311.98 

0.6 

192.53 

152.59 

186.11 

178.06 

as 

4.27 

210.77 

194.08 

....180.36 

on 

163.83 

129.85 

141 J5 

141.27 

-0.2 

T.99 

18035 

188.07 

. 221.00 

on 

200.72 

150.00 

173.18 

160.34 

-02 

3.94 

220.93 

203.44 

. 182.77 

-0 1 

166 00 

131.57 

14&23 

345.72 

-02 

1.77 

183.03 

168.54 

. 1B1 94 

0.B 

165.24 

130.07 

142.57 

178.71 

0.5 

2.04 

1B0.53 

16024 

332 70 

0.3 

302.16 

239.49 

260.71 

261.77 

-0.1 

1.76 

331.71 

30S45 

. 217 06 

-0.1 

197.14 

156.25 

170.09 

205.47 

-0.4 

2.43 

217.30 

200.10 

...J0 1.36 

0.3 

18388 

144.95 

157.79 

160.83 

0.0 

3.02 

200.71 

184.82 

. . 181.53 

0.4 

184.87 

130.67 

142.25 

142.25 

0.2 

1.74 

180.79 

188.46 

463 79 

1.7 

421.23 

333.BG 

363.44 

460.40 

1.6 

3.32 

45024 

420.12 

....203.79 

o.a 

(85.09 

146.70 

159.70 

291.04 

0.0 

1.73 

203.86 

107.72 

..313.41 

0.5 

284.64 

225.61 

245.59 

260.73 

-0.3 

3.33 

312.01 

26731 

.. .75.44 

-1J 

68.52 

54.31 

59.12 

8535 

-1.3 

2.43 

7635 

70J0 

. .. 13 a.ee 

-05 

125.94 

99.82 

108.68 

99.82 

-0.6 

0.77 

13939 

128.26 

...674.70 

-0.5 

521.96 

413.69 

491.35 

559/43 

00 

1.18 

577.31 

531.60 

1141.92 

-1.8 

1037.12 

822.01 

804.83 

9950.63 

-1.1 

1.38 

1162.57 1070-53 

...310.6? 

-0.5 

282.11 

223.60 

243.41 

239.76 

-0.7 

3.08 

312.03 

28733 

90.10 

0.3 

81.84 

64.86 

70.61 

67.79 


405 

89.79 

82.68 

. ..265.37 

0.3 

241.02 

191.03 

207.95 

229.38 

-0.1 

2-21 

264.69 

243.74 

...184.39 

1.4 

167.47 

132.73 

144.49 

241.53 

1/4 

0.60 

101.85 

167/45 

.385.70 

1.2 

349.85 

277.29 

301.85 

249.04 

O.a 

1.07 

380.73 

35a66 

..33617 

-05 

396-23 

234.79 

255.59 

337.95 

0.7 

2 27 

327.68 

301.74 

...187.65 

-0.7 

170.43 

135.08 

747.05 

780.75 

-0.8 

325 

188.95 

17329 

390.36 

- 0.9 

354 54 

281.00 

305 89 

378.48 

-1.0 

226 

393.93 

362.74 

..344.16 

0.3 

221.78 

175.70 

191.33 

189.12 

-02 

IJjfi 

243.43 

224.16 

..113.53 

-2.2 

10251 

81.01 

68.18 

111.37 

-2-2 

3.08 

115.03 

1Q5J13 

. 260.70 

0.7 

236.B4 

T87.72 

204.35 

236.84 

-0.7 

3£8 

2S&99 

238 AB 

.. 384 83 

-0.1 

258.69 

205.03 

223.20 

284.83 

-O.i 

2.00 

285.00 

28243 

360 85 

o.a 

23091 

187.77 

204.41 

219.27 

00 

2.08 

280S4 

24028 

• CJ4.19 

0.2 

203.61 

181.38 

175.68 

10T.14 

-0.5 

3.00 

223.68 

205.97 

,...333.70 

-0.5 

303.07 

240.21 

261.49 

26422 

-0.7 

2.20 

335J17 

30&B2 

.154 69 

-0J3 

14049 

111.35 

121.22 

112.38 

-02 

1.25 

154.97 

142.70 

...183 53 

0.0 

166.69 

132.11 

143.B3 

142.07 

-0.4 

2.14 

183.48 

168.90 

...J7B.7C 

o.a 

253.14 

200.83 

218.41 

277.75 

on 

2.09 

278.76 

256.70 

...19983 

0.0 

181.49 

143.85 

156.59 

184.43 

-0.3 

2.42 

199.92 

18409 

,.r95 7S 

0.9 

20S.62 

212.90 

231.77 

255.46 

04 

2A1 

293^4 

27030 

. .185.45 

a.o 

168.43 

133.50 

145.33 

147.19 

-0.3 

2.13 

IBS 39 

170.71 

. .Jftr.IKJ 

-a i 

192.84 

152.84 

166.33 

1B1.77 

-0.2 

1.91 

212.50 

195.68 

. -257.78 

0 1 

334.12 

105.56 

202.00 

243.21 

-0.1 

2.45 

257.51 

237.12 

. .216.48 

0.0 

196.81 

155.83 

169.64 

186.76 

-02 

2.11 

21649 

199.35 


TUESDAY OCTOBER 29 1996 

Pound Local 


177.17 

141.51 

160.66 

346J7 

175.86 

281.96 

206-35 

160-80 

141-95 

4SSL91 

291.14 
270.69 

88.50 
10048 
559.19 
10081.31 ‘ 
241.34 
67.59 

229.49 

238.16 

247.91 
335.73 
182.25 

382.15 
168/48 

113.91 
23&49 

2B5.00 


' DOLLAR INDEX ■ 
Yee 


chip stocks moved up 
shaiply at the close, leaving 
the composite index 7.57 
higher at 1168.31. Tenaga 
picked up 30 cents to 
M$1 0.10, p ulling the index up 
with it 

Sime UEP, the property 
developer, added 30 cents to 
MS6.05. off a high of M$7.05 
as Investors turned their 
attention back to the 
recently neglected sector. 

Proton rose 20 cents to 
SS7.35 on news that it had 
bought a controlling stake in 
Lotus, the British sports car 
maker. 

KARACHI climbed on 
news that the International 
Monetary Fund planned to 
resume payments of a stalled 
standby loan to Pakistan. 
Late profit-taking cut the 
gains, hut the KSE 100 index 


closed 10.61 higher at 
1,455.85. after 1.469.61. 

COLOMBO closed higher 
on small investor specula- 
tion that next Wednesday's 
budget would be market- 
friendly. The all-share index 
put on 4.58 to 608.48. 

Commercial Bank rose 
SRs8 to SRsllO and Hatton 
National Bank by SRslO to 
SRs235. 

SINGAPORE featured a 
tumble in foreign shares of 
Singapore Airlines to their 
lowest for almost a year on 
selling by overseas funds 
after downbeat comments by 
the chief executive. 

The foreign shares, most 
widely followed by fund 
managers, lost 20 cents at 
S$ 12.40, taking their losses 
since Monday's poor half- 
year results to SSI .60. 


Singapore Telecom rose 14 
cents to S53.2S on rumours 
that its weighting in key 
regional indices might be 
increased. The Straits Times 
Industrial index was 0.79 
easier at 2,08323. 

HONG KONG was caught 
between optimism after 
Wednesday's surge in prices 
and caution ahead of fresh 
US economic data. The Hang 
Seng index finished 72.09 
higher at 12,477.56 In turn- 
over that eased to HK$6.3bn. 

Property stocks were the 
strongest performers. 
Cheung Kong rose HK$1 to 
HKS62. SHK Properties 
gained 75 cents to HKS88 and 
New World Development 
advanced 70 cents to HK$45. 

SmarTone Telecommuni- 
cations Holdings, the mobile 
telephone operator which 


made its debut, closed at 
HK51&50, compared with its 
HK817.25 issue price. 

SHANGHAI’S hard cur- 
rency B share index ended at 
a record closing low on 
heavy selling by foreign 
investors disillusioned by 
poor corporate performances 
and Beijing's repeated reaf- 
firmation of a ban on domes- 
tic investors trading the B 
shares. The index fell 0.226 
to 47.077 points, below the 
previous record closing low 
of 47.13 points on June 7. 

DHAKA soared in a fur- 
ther celebration of its own 
illiquidity. The DSE index 
rose 162.67 or 5.8 per cent to 
2,986.29. It has now climbed 
more than 50 per cent since 
mid-October and has almost 
quadrupled over the past six 
months. 



Tho Wan Indm tMafl... .216.46 0.0 196.61 155.63 169.64 186.76 -C 

Caryiqw ft?* irwruimnl UflUM. OoWmsn. ixJe «W Co. and Standard & PWl IBM. All npm i 
Law: pvfa am -jviauecp hr ito odtai 


. *F77S4P ACUMT d a fin mdam a rik at TIM firtowol Tims Lm4ad and Standard | Bop's. 



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